κ2001 Statutes of Nevada, Page 2119 (Chapter 417, SB 530)κ
Sec. 6. Section 8 of chapter 489, Statutes of Nevada 1999, at page 2530, is hereby amended to read as follows:
Sec. 8. 1. The coalition must be governed by a board consisting of 10 members.
2. The members of the board must be appointed as follows:
(a) Two members appointed by the Board of County Commissioners of Clark County from its membership, one of whom is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002;
(b) Two members appointed by the City Council of the City of Las Vegas from its membership, one of whom is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002;
(c) Two members appointed by the City Council of the City of North Las Vegas from its membership, one of whom is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002;
(d) Two members appointed by the City Council of the City of Henderson from its membership, one of whom is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002;
(e) One member appointed by the City Council of Boulder City from its membership who is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002; and
(f) One member appointed by the Board of Trustees of the Clark County School District from its membership who is a member of the debt management commission established pursuant to subsection 1 of NRS 350.002.
3. The term of each member of the board is coterminous with his term of elected office unless the public entity that appointed him revokes his appointment to the board.
4. [If a member fails to attend three consecutive meetings or fails to attend five meetings during a calendar year, his appointment is automatically revoked.
5.] If a member is unable to serve for the duration of his term or has his membership revoked, his position becomes vacant. A vacancy on the board must be filled by the authority which was entitled to appoint the member whose position is vacant. A vacancy must be filled within 45 days after the departure of the member. The term of a member appointed by the board to fill a vacancy is the remainder of the term of the member whose position is vacant.
Sec. 7. Section 11 of chapter 489, Statutes of Nevada 1999, at page 2531, is hereby amended to read as follows:
Sec. 11. The board shall:
1. Adopt rules or bylaws that govern its management and affairs [.] , including, without limitation, rules or bylaws pertaining to the attendance of members of the board at meetings of the board.
2. Prepare and adopt an annual budget.
Sec. 8. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 2120κ
Senate Bill No. 552Committee on Government Affairs
CHAPTER 418
AN ACT relating to affordable housing; expanding the powers of the housing division of the department of business and industry; exempting the housing division from the state purchasing act; removing certain requirements for loans made by the housing division; and providing other matters properly relating thereto.
[Approved: June 5, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 319 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Upon the approval of the state board of finance, the division may enter into instruments, agreements and other such transactions for one or more of the following purposes:
(a) Reducing or modifying the amount or duration of any payment, interest rate, spread or similar risk;
(b) Lowering the cost of borrowing when used in combination with the issuance or carrying of bonds or investments; or
(c) Enhancing the relationship between risk and return with respect to the programs of the division for lending or investment or any portion thereof.
2. In entering into such instruments, agreements or other such transactions, the division shall consider the creditworthiness of the counterparties and other relevant criteria relating to the objectives of the programs of the division.
Sec. 2. NRS 319.140 is hereby amended to read as follows:
319.140 1. The division shall administer the provisions of this chapter. The administrator may adopt, amend or rescind regulations, consistent with the provisions of this chapter, appropriate to carry out its purposes.
2. The administrator may make copies of all proceedings and other records and documents of the division and issue certificates under the seal of the division to the effect that the copies are true copies, and all persons dealing with the division may rely upon such certificates.
3. The division has perpetual succession, subject to termination in accordance with statute, and may [employ] :
(a) Sue and be sued in its own name, subject to chapter 41 of NRS;
(b) Adopt an official seal and alter the same at the pleasure of the division;
(c) Maintain such offices at any place or places within the state as it determines necessary to carry out the provisions of this chapter;
(d) Adopt, amend and repeal regulations as provided in chapter 233B of NRS, consistent with the provisions of this chapter and appropriate to carry out its purposes;
(e) Maintain records, proceedings and documents of the division, subject to chapters 239, 239A and 239B of NRS;
(f) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions pursuant to this chapter with any governmental agency, private corporation or other entity, or natural person;
κ2001 Statutes of Nevada, Page 2121 (Chapter 418, SB 552)κ
chapter with any governmental agency, private corporation or other entity, or natural person;
(g) Enter into agreements or other transactions with, and accept grants from and cooperate with, any governmental agency or other source in furtherance of the purposes of this chapter;
(h) Acquire real or personal property or any interest therein, by gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option or otherwise;
(i) Hold, sell, assign, lease, encumber, mortgage, release or otherwise dispose of any real or personal property or any interest therein, by public or private sale, with or without public bidding, notwithstanding any other provision of law;
(j) Employ or contract for the services of attorneys, accountants, financial experts and any other advisers, employees, consultants and agents as the administrator may determine to be necessary [.] ;
(k) Create or cause to be created legal entities, including nonprofit corporations, grantor trusts and other legal entities, which the division determines are necessary or convenient for the exercise of its powers and duties pursuant to this chapter, provided, however, that the issuance of bonds, notes or other evidence of indebtedness by any legal entity controlled by the division is subject to the approval of the state board of finance;
(l) Provide advice, technical information, training and educational services related to the development of housing, building technologies and related fields;
(m) Conduct research, make grants, and promote the development of housing, building technologies and related fields; and
(n) Do any and all things necessary or appropriate to carry out its purposes and exercise the powers expressly granted pursuant to this chapter.
4. Before September 1 of each even-numbered year , the division shall submit a report of its activities for the biennium ending June 30 of that year to the governor, state treasurer and the legislature. Each such report shall set forth a complete operating and financial statement of the division during such biennium. The division shall cause an audit of its books and accounts to be made at least once in each fiscal year by a certified public accountant. The certified public accountant may audit the divisions books and accounts for consecutive audit periods as requested by the division.
5. The division is exempt from the provisions of chapter 333 of NRS.
Sec. 3. NRS 319.190 is hereby amended to read as follows:
319.190 [1.] The division may make, undertake commitments to make and participate with lending institutions in the making of mortgage loans, make temporary loans and advances in anticipation of mortgage loans, and issue letters of credit [pursuant to subsection 2] to finance the acquisition, construction [or] , development, renewal, redevelopment, rehabilitation or refinancing of residential housing, including multifamily housing [. Any loan made by the division pursuant to this section must be insured or guaranteed unless it is financed by an issue of obligations of the division that are insured or secured by surety bonds, letters of credit not issued by the division, guaranties or other means of assuring repayment of those obligations. Such loans may be made or letters of credit issued only after a determination by the administrator that mortgage loans or letters of credit are not otherwise available from private lenders upon reasonable equivalent terms and conditions.
κ2001 Statutes of Nevada, Page 2122 (Chapter 418, SB 552)κ
not otherwise available from private lenders upon reasonable equivalent terms and conditions.
2. The division may issue a letter of credit only if sufficient reserves in the funds established by the division are deposited in a separate account to be used to pay any liabilities that may be incurred by issuing the letter of credit. The aggregate amount of outstanding letters of credit issued by the division must not exceed $5,000,000.] , within this state.
Sec. 4. NRS 319.200 is hereby amended to read as follows:
319.200 Any [insured] mortgage loan made by the division [shall:
1. Not exceed the amount permitted under the insurance program under which the mortgage is insured.
2. Be] must be secured in such manner, be repaid in such period and bear interest at [a] such rate or rates as are determined by the division . [and permitted under the insurance program under which the mortgage is insured. In addition to such interest charges, the division may charge and collect such fees and charges, including reimbursement of the divisions operating expenses, financing costs, service charges, insurance premiums and mortgage insurance premiums as the division determines to be reasonable.]
Sec. 5. NRS 319.210 is hereby amended to read as follows:
319.210 1. The division may:
(a) Invest in, purchase or make commitments to purchase, and take assignments from lending institutions of mortgage loans and promissory notes accompanying such mortgage loans, including [federally insured] mortgage loans or participations with lending institutions in such promissory notes and mortgage loans, for the construction, rehabilitation, purchase, leasing or refinancing of residential housing within this state.
(b) Sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by the division.
2. At or before the time of purchase, the lending institution shall certify to the division with respect to all mortgage loans transferred to the division:
(a) That the mortgage loans transferred to the division are for residential housing for eligible families within this state; or
(b) That the proceeds of sale or its equivalent will be reinvested in mortgage loans for residential housing for eligible families within this state in an aggregate principal amount equal to the amount of such sale proceeds.
Sec. 6. NRS 333.020 is hereby amended to read as follows:
333.020 As used in this chapter, unless the context otherwise requires:
1. Chief means the chief of the purchasing division.
2. Director means the director of the department of administration.
3. Invitation to bid means a written statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.
4. Proprietary information means:
(a) Any trade secret or confidential business information that is contained in a bid or proposal submitted on a particular contract; or
(b) Any other trade secret or confidential business information submitted in a bid or proposal and designated as proprietary by the chief.
As used in this subsection, confidential business information means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost or price submitted in support of a bid or proposal. The term does not include the amount of a bid or proposal.
κ2001 Statutes of Nevada, Page 2123 (Chapter 418, SB 552)κ
5. Purchasing division means the purchasing division of the department of administration.
6. Purchasing officer means a person who is authorized by the chief or a using agency to participate in:
(a) The evaluation of bids or proposals for a contract;
(b) Any negotiations concerning a contract; or
(c) The development, review or approval of a contract.
7. Request for proposals means a written statement which sets forth the requirements and specifications of a contract to be awarded by competitive selection.
8. Trade secret has the meaning ascribed to it in NRS 600A.030.
9. Using agencies means all officers, departments, institutions, boards, commissions and other agencies in the executive department of the state government which derive their support from public money in whole or in part, whether the money is provided by the State of Nevada, received from the Federal Government or any branch, bureau or agency thereof, or derived from private or other sources. The term does not include the Nevada rural housing authority, the housing division of the department of business and industry, local governments as defined in NRS 354.474, conservation districts, irrigation districts and the University and Community College System of Nevada.
10. Volunteer fire department means a volunteer fire department which pays premiums for industrial insurance pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.
Sec. 7. NRS 319.080, 319.150, 319.160, 319.165, 319.175 and 319.180 are hereby repealed.
Sec. 8. This act becomes effective on July 1, 2001, and expires by limitation on July 1, 2003.
________
Senate Bill No. 569Senator Amodei
CHAPTER 419
AN ACT relating to telephone systems; providing for the imposition of surcharges on telephone services by certain counties for the enhancement of telephone systems for reporting emergencies in those counties; providing for the deposit of certain fees imposed by cities and counties on providers of personal wireless service into a special revenue fund; revising the purposes for which money in the special revenue fund may be used; prohibiting the governing body of every incorporated city from imposing certain requirements upon a provider of telecommunications service; and providing other matters properly relating thereto.
[Approved: June 5, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 244A of NRS is hereby amended by adding thereto a new section to read as follows:
1. If the board of county commissioners of a county whose population is less than 100,000 imposes a surcharge pursuant to NRS 244A.7643 and:
κ2001 Statutes of Nevada, Page 2124 (Chapter 419, SB 569)κ
(a) The board also imposes a fee on a provider of personal wireless service and the fee is a fee for a business license which is regulated pursuant to NRS 354.59881 to 354.59889, inclusive, the county treasurer shall, except as otherwise provided in this section, deposit the money generated from that fee, including any penalty and interest assessed pursuant to NRS 354.59887, into the special revenue fund.
(b) A city located within the county imposes a fee on a provider of personal wireless service and the fee is a fee for a business license which is regulated pursuant to NRS 354.59881 to 354.59889, inclusive, the governing body of the city shall transfer the money generated from that fee, including any penalty and interest assessed pursuant to NRS 354.59887, to the county treasurer for deposit into the special revenue fund.
2. A county treasurer shall not deposit any money into the special revenue fund pursuant to this section if the deposit of the money would cause the unencumbered balance in the special revenue fund to exceed the maximum allowable balance for the special revenue fund set forth in NRS 244A.7645.
3. If the governing body of a city transfers to the county treasurer for deposit into the special revenue fund pursuant to this section money generated from fees for business licenses which fees are regulated by NRS 354.59881 to 354.59889, inclusive, and the deposit of that money into the special revenue fund would cause the unencumbered balance of the special revenue fund to exceed the maximum allowable balance for the special revenue fund set forth in NRS 244A.7645, the county treasurer shall refund to the governing body of the city that amount of such money which, if so deposited, would cause the unencumbered balance of the special revenue fund to exceed its maximum allowable balance.
4. As used in this section:
(a) Personal wireless service has the meaning ascribed to it in NRS 354.598816.
(b) Special revenue fund means the special revenue fund created pursuant to NRS 244A.7645.
Sec. 2. NRS 244A.7641 is hereby amended to read as follows:
244A.7641 As used in NRS 244A.7641 to 244A.7647, inclusive, and section 1 of this act, unless the context otherwise requires:
1. Mobile telephone service means cellular or other service to a telephone installed in a vehicle or which is otherwise portable.
2. Supplier means a person authorized by the Federal Communications Commission to provide mobile telephone service.
Sec. 3. NRS 244A.7643 is hereby amended to read as follows:
244A.7643 1. [The] Except as otherwise provided in this section, the board of county commissioners in a county whose population is 20,000 or more [than 100,000] but less than 400,000 may, by ordinance, impose a surcharge on:
(a) Each access line or trunk line of each customer to the local exchange of any telephone company providing those lines in the county; and
(b) The mobile telephone service provided to each customer of that service [who resides] whose place of primary use is in the county,
for the enhancement of the telephone system for reporting an emergency in the county.
κ2001 Statutes of Nevada, Page 2125 (Chapter 419, SB 569)κ
2. The board of county commissioners of a county whose population is less than 100,000 may not impose a surcharge pursuant to this section unless the board first adopts a 5-year master plan for the enhancement of the telephone system for reporting emergencies in the county. The master plan must include an estimate of the cost of the enhancement of the telephone system and all proposed sources of money for funding the enhancement.
3. The surcharge imposed by a board of county commissioners pursuant to [subsection 1:] this section:
(a) For each access line to the local exchange of a telephone company, must not exceed 25 cents each month;
(b) For each trunk line to the local exchange of a telephone company, must equal 10 times the amount of the surcharge imposed for each access line to the local exchange of a telephone company pursuant to paragraph (a); and
(c) For each telephone number assigned to a customer by a supplier of mobile telephone service, must equal the amount of the surcharge imposed for each access line to the local exchange of a telephone company pursuant to paragraph (a).
[3.] 4. A telephone company which provides access lines or trunk lines in a county which imposes a surcharge pursuant to this section or a supplier which provides mobile telephone service to a customer in such a county, shall collect the surcharge from its customers each month. Except as otherwise provided in NRS 244A.7647, the telephone company or supplier shall remit the surcharge it collects to the treasurer of the county [where] in which the surcharge is imposed not later than the 15th day of the month after the month it receives payment of the surcharge from its customers.
[4.] 5. An ordinance adopted pursuant to subsection 1 may include a schedule of penalties for the delinquent payment of amounts due from telephone companies or suppliers pursuant to this section. Such a schedule:
(a) Must provide for a grace period of not less than 90 days after the date on which the telephone company or supplier must otherwise remit the surcharge to the county treasurer; and
(b) Must not provide for a penalty that exceeds 5 percent of the cumulative amount of surcharges owed by a telephone company or a supplier.
[5.] 6. As used in this section, trunk line means a line which provides a channel between a switchboard owned by a customer of a telephone company and the local exchange of the telephone company.
Sec. 4. NRS 244A.7645 is hereby amended to read as follows:
244A.7645 If a surcharge is imposed in a county pursuant to NRS 244A.7643, the board of county commissioners of that county shall:
1. Establish, by ordinance, an advisory committee to develop a plan to enhance the telephone system for reporting an emergency in that county and to oversee any money allocated for that purpose. The advisory committee must consist of not less than five members who:
(a) Are residents of the county;
(b) Possess knowledge concerning telephone systems for reporting emergencies; and
(c) Are not elected public officers.
If the county in which the surcharge is being imposed pursuant to NRS 244A.7643 has a population of less than 100,000, the advisory committee must include a representative of an incumbent local exchange carrier which provides service to persons in that county.
κ2001 Statutes of Nevada, Page 2126 (Chapter 419, SB 569)κ
must include a representative of an incumbent local exchange carrier which provides service to persons in that county. As used in this subsection, incumbent local exchange carrier has the meaning ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October 1, 1999, and includes a local exchange carrier that is treated as an incumbent local exchange carrier pursuant to that section.
2. Create a special revenue fund of the county for the deposit of the money collected pursuant to NRS 244A.7643. The money in the fund must be used only to [:
(a) Enhance] enhance the telephone system for reporting an emergency so that the number and address from which a call received by the system is made may be determined [; and
(b) Make any other improvements to the services provided by the telephone system for reporting an emergency.] , including only:
(a) Paying recurring and nonrecurring charges for telecommunication services necessary for the operation of the enhanced telephone system;
(b) Paying costs for personnel and training associated with the routine maintenance and updating of the database for the system;
(c) Purchasing, leasing or renting the equipment and software necessary to operate the enhanced telephone system; and
(d) Paying costs associated with any maintenance, upgrade and replacement of equipment and software necessary for the operation of the enhanced telephone system.
3. If the balance in the fund created pursuant to subsection 2 which has not been committed for expenditure exceeds $500,000 at the end of any fiscal year, reduce the amount of the surcharge imposed during the next fiscal year by the amount necessary to ensure that the unencumbered balance in the fund at the end of the next fiscal year does not exceed $500,000.
Sec. 5. NRS 268.088 is hereby amended to read as follows:
268.088 The governing body of an incorporated city [whose population is 25,000 or more] shall not:
1. Impose any terms or conditions on a franchise for the provision of telecommunications service or interactive computer service other than terms or conditions concerning the placement and location of the telephone or telegraph lines and fees imposed for a business license or the franchise, right or privilege to construct, install or operate such lines.
2. Require a company that provides telecommunications service or interactive computer service to obtain a franchise if it provides telecommunications service over the telephone or telegraph lines owned by another company.
3. Require a person who holds a franchise for the provision of telecommunications service to place its facilities in ducts or conduits or on poles owned or leased by the city.
4. As used in this section:
(a) Interactive computer service has the meaning ascribed to it in 47 U.S.C. § 230(e)(2), as that section existed on July 16, 1997.
(b) Telecommunications service has the meaning ascribed to it in 47 U.S.C. § 153(46), as that section existed on July 16, 1997.
Sec. 6. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 2127κ
Assembly Bill No. 581Committee on Judiciary
CHAPTER 420
AN ACT relating to orders; making various changes concerning orders for protection against domestic violence; providing that certain orders for protection issued in another state are not subject to certain requirements to be given full faith and credit in this state; and providing other matters properly relating thereto.
[Approved: June 5, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 33 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, an order for protection against domestic violence issued by the court of another state, territory or Indian tribe within the United States, including, without limitation, any provisions in the order related to custody and support, is valid and must be accorded full faith and credit and enforced by the courts of this state as if it were issued by a court in this state, regardless of whether the order has been registered in this state, if the court in this state determines that:
(a) The issuing court had jurisdiction over the parties and the subject matter under the laws of the state, territory or Indian tribe in which the order was issued; and
(b) The adverse party was given reasonable notice and an opportunity to be heard before the order was issued or, in the case of an ex parte order, the adverse party was given reasonable notice and an opportunity to be heard within the time required by the laws of the issuing state, territory or tribe and, in any event, within a reasonable time after the order was issued.
2. If the order for protection against domestic violence issued by the court of another state, territory or Indian tribe is a mutual order for protection against domestic violence and:
(a) No counter or cross-petition or other pleading was filed by the adverse party; or
(b) A counter or cross-petition or other pleading was filed and the court did not make a specific finding of domestic violence by both parties,
the court shall refuse to enforce the order against the applicant and may determine whether to issue its own temporary or extended order.
3. A law enforcement officer shall enforce an order for protection against domestic violence issued by the court of another state, territory or Indian tribe and shall make an arrest for a violation thereof in the same manner that a law enforcement officer would make an arrest for a violation of a temporary or extended order issued by a court of this state unless it is apparent to the officer that the order is not authentic on its face. An officer shall determine that an order is authentic on its face if the order contains:
(a) The names of the parties;
(b) Information indicating that the order has not expired; and
κ2001 Statutes of Nevada, Page 2128 (Chapter 420, AB 581)κ
(c) Information indicating that the court which issued the order had legal authority to issue the order as evidenced by a certified copy of the order, a file-stamped copy of the order, an authorized signature or stamp of the court which issued the order or another indication of the authority of the court which issued the order.
An officer may determine that any other order is authentic on its face.
4. In enforcing an order for protection against domestic violence issued by the court of another state, territory or Indian tribe or arresting a person for a violation of such an order, a law enforcement officer may rely upon:
(a) A copy of an order for protection against domestic violence that has been provided to the officer;
(b) An order for protection against domestic violence that is included in the repository for information concerning orders for protection against domestic violence pursuant to NRS 33.095 or in any national crime information database;
(c) Oral or written confirmation from a law enforcement agency or court in the jurisdiction in which the order for protection against domestic violence was issued that the order is valid and effective; or
(d) An examination of the totality of the circumstances concerning the existence of a valid and effective order for protection against domestic violence, including, without limitation, the statement of a person protected by the order that the order remains in effect.
5. The fact that an order has not been registered or included in the repository for information concerning orders for protection against domestic violence pursuant to NRS 33.095 or in any national crime information database is not grounds for a law enforcement officer to refuse to enforce the terms of the order unless it is apparent to the officer that the order is not authentic on its face.
6. A court or law enforcement officer who enforces an order for protection against domestic violence issued by the court of another state, territory or Indian tribe based upon a reasonable belief that the order is valid or who refuses to enforce such an order based upon a reasonable belief that the order is not valid and the employer of such a law enforcement officer are immune from civil and criminal liability for any action taken or not taken based on that belief.
Sec. 2. NRS 33.017 is hereby amended to read as follows:
33.017 As used in NRS 33.017 to 33.100, inclusive, and section 1 of this act, unless the context otherwise requires:
1. Extended order means an extended order for protection against domestic violence.
2. Temporary order means a temporary order for protection against domestic violence.
Sec. 3. NRS 33.050 is hereby amended to read as follows:
33.050 1. The payment of all costs and official fees must be deferred for any applicant for a temporary or extended order. After any hearing and no later than final disposition of the application or order, the court shall assess the costs and fees against the adverse party, except that the court may reduce them or waive them, as justice may require.
2. The clerk of the court shall provide each party, free of cost, with information about the:
(a) Availability of temporary and extended orders;
κ2001 Statutes of Nevada, Page 2129 (Chapter 420, AB 581)κ
(b) Procedure for filing an application for an order; and
(c) Right to proceed without legal counsel.
3. The clerk of the court or other person designated by the court shall assist any party in completing and filing the application, affidavit , and any other paper or pleading necessary to initiate or respond to an application for a temporary or extended order. This assistance does not constitute the practice of law, but the clerk shall not render any advice or service that requires the professional judgment of an attorney.
4. The clerk of the court shall not charge an applicant for a temporary or extended order for providing the applicant with a certified copy of the temporary or extended order.
Sec. 4. NRS 33.060 is hereby amended to read as follows:
33.060 1. The court shall transmit, by the end of the next business day after the order is issued, a copy of the temporary or extended order to the appropriate law enforcement agency which has jurisdiction over the residence, school, child care facility or other provider of child care, or place of employment of the applicant or the minor child.
2. The court [may] shall order the appropriate law enforcement agency to serve , without charge, the adverse party personally with the temporary order [if it finds that such service is necessary to avoid any act of violence] and to file with or mail to the clerk of the court proof of service by the end of the next business day after service is made. Service of an application for an extended order and the notice of hearing thereon must be served upon the adverse party pursuant to the Nevada Rules of Civil Procedure.
3. A law enforcement agency shall enforce a temporary or extended order without regard to the county in which the order was issued.
4. The clerk of the court shall issue, without fee, a copy of the temporary or extended order to the applicant and the adverse party.
Sec. 5. NRS 33.090 is hereby amended to read as follows:
33.090 1. [A valid order for protection against domestic violence issued by a court of another state, territory or Indian tribe within the United States must be accorded full faith and credit by the courts of this state and enforced as if it were issued by a court in this state, regardless of whether the order has been registered in this state.
2.] A person may [apply to a court of this state to] register an order for protection against domestic violence issued by the court of another state, territory or Indian tribe within the United States by presenting a certified copy of the order to the clerk of the court in a judicial district in which the person believes that enforcement may be necessary.
[3. Except as otherwise provided in subsection 5, upon application by the protected party pursuant to subsection 2, a court of competent jurisdiction in this state shall register such an order if:
(a) The court determines that the issuing court had proper jurisdiction over the parties and the subject matter under the laws of the state, territory or tribe; and
(b) The court determines that the adverse party was given reasonable notice and an opportunity to be heard before the order was issued or, in the case of an ex parte order, the adverse party was given reasonable notice and an opportunity to be heard as soon as possible after the order was issued.
4. An order that is registered has the same effect and must be enforced in like manner as an order for protection against domestic violence issued by a court of this state.
κ2001 Statutes of Nevada, Page 2130 (Chapter 420, AB 581)κ
5. If the order for protection against domestic violence issued by the court of another state, territory or Indian tribe was a mutual order for protection against domestic violence and:
(a) No counter or cross-petition was filed seeking such protection order;
(b) A counter or cross-petition was filed and the court did not make a specific finding of domestic violence by both parties; or
(c) The person who is applying to register the order has violated a law of the State of Nevada relating to a different protection order issued against him,
the court may refuse to register and enforce the order and may determine whether to issue its own temporary or extended order.
6. A temporary or extended order of another state, territory or Indian tribe presented pursuant to this section which appears authentic on its face must be presumed valid.
7. A court, law enforcement officer or any other person who enforces an order for protection against domestic violence based upon a reasonable belief that the order is valid is immune from civil liability for any action taken based on that belief.
8.] 2. The clerk of the court shall [maintain] :
(a) Maintain a record of each order registered pursuant to this section [.
9. The clerk shall not charge a fee for an application to register or for registering an order pursuant to this section.
10. The clerk shall inform] ;
(b) Provide the protected party with a certified copy of the order registered pursuant to this section bearing proof of registration with the court;
(c) Forward, by the end of the next business day, a copy of an order registered pursuant to this section to the appropriate law enforcement agency which has jurisdiction over the residence, school, child care facility or other provider of child care, or place of employment of the protected party or the child of the protected party; and
(d) Inform the protected party upon the successful transfer of information concerning the registration to the central repository for Nevada records of criminal history as required pursuant to NRS 33.095.
3. The clerk of the court shall not:
(a) Charge a fee for registering an order or for providing a certified copy of an order pursuant to this section.
(b) Notify the party against whom the order has been made that an order for protection against domestic violence issued by the court of another state, territory or Indian tribe has been registered in this state.
4. A person who registers an order pursuant to this section must not be charged to have the order served in this state.
Sec. 6. NRS 4.060 is hereby amended to read as follows:
4.060 1. Except as otherwise provided in this section [,] and NRS 33.017 to 33.100, inclusive, and section 1 of this act, each justice of the peace shall charge and collect the following fees:
(a) On the commencement of any action or proceeding in the justices court, other than in actions commenced pursuant to chapter 73 of NRS, to be paid by the party commencing the action:
κ2001 Statutes of Nevada, Page 2131 (Chapter 420, AB 581)κ
If the sum claimed does not exceed $1,000................................................................................................... $28.00
If the sum claimed exceeds $1,000 but does not exceed $2,500................................................................. 50.00
If the sum claimed exceeds $2,500 but does not exceed $4,500............................................................... 100.00
If the sum claimed exceeds $4,500 but does not exceed $6,500............................................................... 125.00
If the sum claimed exceeds $6,500 but does not exceed $7,500............................................................... 150.00
In all other civil actions......................................................................................................................................... 28.00
(b) For the preparation and filing of an affidavit and order in an action commenced pursuant to chapter 73 of NRS:
If the sum claimed does not exceed $1,000..................................................................................................... 25.00
If the sum claimed exceeds $1,000 but does not exceed $2,500................................................................. 45.00
If the sum claimed exceeds $2,500 but does not exceed $5,000................................................................. 65.00
(c) On the appearance of any defendant, or any number of defendants answering jointly, to be paid him or them on filing the first paper in the action, or at the time of appearance:
In all civil actions................................................................................................................................................... 12.00
For every additional defendant, appearing separately..................................................................................... 6.00
(d) No fee may be charged where a defendant or defendants appear in response to an affidavit and order issued pursuant to the provisions of chapter 73 of NRS.
(e) For the filing of any paper in intervention................................................................................................. 6.00
(f) For the issuance of any writ of attachment, writ of garnishment, writ of execution or any other writ designed to enforce any judgment of the court.................................................................................................. 6.00
(g) For filing a notice of appeal, and appeal bonds..................................................................................... 12.00
One charge only may be made if both papers are filed at the same time.
(h) For issuing supersedeas to a writ designed to enforce a judgment or order of the court.. 12.00
(i) For preparation and transmittal of transcript and papers on appeal.................................................. 12.00
(j) For celebrating a marriage and returning the certificate to the county recorder............................... 35.00
(k) For entering judgment by confession......................................................................................................... 6.00
(l) For preparing any copy of any record, proceeding or paper, for each page........................................... .30
(m) For each certificate of the clerk, under the seal of the court................................................................ 3.00
(n) For searching records or files in his office, for each year........................................................................ 1.00
(o) For filing and acting upon each bail or property bond ........................................................................ 40.00
2. A justice of the peace shall not charge or collect any of the fees set forth in subsection 1 for any service rendered by him to the county in which his township is located.
3. A justice of the peace shall not charge or collect the fee pursuant to paragraph (j) of subsection 1 if he performs a marriage ceremony in a commissioner township.
κ2001 Statutes of Nevada, Page 2132 (Chapter 420, AB 581)κ
4. Except as otherwise provided by an ordinance adopted pursuant to the provisions of NRS 244.207, the justice of the peace shall, on or before the fifth day of each month, account for and pay to the county treasurer all fees collected during the preceding month, except for the fees he may retain as compensation and the fees he is required to pay to the state treasurer pursuant to subsection 5.
5. The justice of the peace shall, on or before the fifth day of each month, pay to the state treasurer [half] one-half of the fees collected pursuant to paragraph (o) of subsection 1 during the preceding month. The state treasurer shall deposit the money in the fund for the compensation of victims of crime.
Sec. 7. NRS 17.340 is hereby amended to read as follows:
17.340 As used in NRS 17.330 to 17.400, inclusive, unless the context otherwise requires, foreign judgment means any judgment of a court of the United States or of any other court which is entitled to full faith and credit in this state, except [a] :
1. A judgment to which chapter 130 of NRS applies [.] ; and
2. An order for protection issued for the purpose of preventing violent or threatening acts or harassment against, or contact or communication with or physical proximity to, another person, including temporary and final orders.
Sec. 8. This act becomes effective on July 1, 2001.
________
Senate Bill No. 219Committee on Transportation
CHAPTER 421
AN ACT relating to property; revising the manner in which the department of transportation is required to dispose of certain property; and providing other matters properly relating thereto.
[Approved: June 5, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 408.533 is hereby amended to read as follows:
408.533 1. All real property, interests therein or improvements thereon and personal property acquired before, on or after April 1, 1957, in accordance with the provisions of NRS 408.487 and 408.489 must, after approval by the board and if no longer needed for highway purposes, be disposed of by the director in accordance with the provisions of subsection 2, except that:
(a) When the property was originally donated to the state, no charge may be made if it is returned to the original owner or to the holder of the reversionary right.
(b) When the property has been wholly or partially paid for by towns, cities or counties, disposal of the property and of money received therefor must be agreed upon by the governing bodies of the towns, cities and counties and the department.
κ2001 Statutes of Nevada, Page 2133 (Chapter 421, SB 219)κ
(c) When the title to the real property has been acquired in fee pursuant to NRS 408.487 and 408.489 and, in the opinion of the board, a sale by means of a public auction or sealed bids is uneconomical or impractical because:
(1) There is no access to the property;
(2) The property has value or an increased value only to a single adjoining property owner; or
(3) Such a sale would work an undue hardship upon a property owner as a result of a severance of the property of that owner or a denial of access to a public highway,
the board may enter into a direct sale of the property with such an owner or any other person for its fair market value.
(d) When the property has been acquired and [:
(1) The proposed purpose for which it was acquired is later abandoned by the department; or
(2) Part] the property or any portion of the property is no longer needed for highway purposes , [and] the department [determines that the property was acquired for less than its fair market value,
the department] shall give notice of its intention to dispose of the property by publication in a newspaper of general circulation in the county where the property is situated. The notice must include the departments appraisal of the fair market value of the property. Any person from whom the property was purchased or his heir or grantee may purchase the property at its fair market value by direct sale from the department within 60 days after the notice is published. If more than one person qualified to purchase the property by direct sale pursuant to this paragraph so requests, the person with the superior claim, as determined by the department in its sole discretion, is entitled to purchase the property by direct sale. If [no] a person who is entitled to purchase the property by direct sale pursuant to this paragraph reasonably believes that the departments appraisal of the property is greater than the fair market value of the property, the person may file an objection to the appraisal with the department. The department shall set forth the procedure for filing an objection and the process under which a final determination will be made of the fair market value of the property for which an objection is filed. The department shall sell the property in the manner provided in subsection 2 if:
(1) No person requests to purchase the property by direct sale within 60 days after the notice is published pursuant to this paragraph [, the department shall sell the property in the manner provided in subsection 2.]; or
(2) A person who files an objection pursuant to this paragraph fails, within 10 business days after he receives a written notice of the final determination of the fair market value of the property, to notify the department in writing that he wishes to purchase the property at the fair market value set forth in the notice.
(e) When the property is sought by another public agency for a reasonable public use, the department may first offer the property to the public agency at its fair market value.
2. All property, interests or improvements not [falling] included within the provisions of subsection 1 must first be offered for sale by the department singly or in combination at public auction or by sealed bids. If the highest bid received is 90 percent or more of the departments appraisal of the fair market value of the property, the property may be sold to the highest bidder. The notice and the terms of the sale must be published in a newspaper of general circulation in the county where the property is situated.
κ2001 Statutes of Nevada, Page 2134 (Chapter 421, SB 219)κ
general circulation in the county where the property is situated. [Those] The auctions and openings of bids must be conducted by the department. If the property cannot be sold for 90 percent or more of its fair market value, the department may enter into a written listing agreement with a person licensed pursuant to chapter 645 of NRS to sell or lease the property for 90 percent or more of its fair market value.
3. It is conclusively presumed in favor of the department and any purchaser for value that the department acted within its lawful authority in acquiring and disposing of the property, and that the director acted within his lawful authority in executing any conveyance vesting title in the purchaser. All such conveyances must be quitclaim in nature and the department shall not warrant title, furnish title insurance or pay the tax on transfer of real property.
4. No person has a right of action against the department or its employees for a violation of this section. This subsection does not prevent an action by the attorney general on behalf of the State of Nevada or any aggrieved person.
5. All sums of money received by the department for the sale of real and personal property must be deposited with the state treasurer to be credited to the state highway fund, unless the Federal Highway Administration participated in acquisition of the property, in which case a pro rata share of the money obtained by disposal of the property must be paid to the Federal Highway Administration.
6. The department may reserve and except easements, rights or interests from the conveyance of any real property disposed of in accordance with this section or exchanged pursuant to subsection 5 of NRS 408.489. [Those] The easements, rights or interests include, but are not limited to:
(a) Abutters rights of light, view or air.
(b) Easements of access to and from abutting land.
(c) Covenants prohibiting the use of signs, structures or devices advertising activities not conducted, services not rendered or goods not produced or available on the real property.
Sec. 2. The amendatory provisions of section 1 of this act do not apply to any property for which the department of transportation publishes a notice of its intention to dispose of the property pursuant to NRS 408.533 before the effective date of this act.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2135κ
Senate Bill No. 527Committee on Taxation
CHAPTER 422
AN ACT relating to cigarettes; exempting duty-free sales enterprises and persons importing cigarettes for personal use from provisions governing the licensing of cigarette dealers and the taxation of cigarettes; providing that cigarette revenue stamps must identify the dealer who affixed the stamps; requiring certain dealers to file certificates regarding cigarettes imported into the United States; expanding the scope of prohibited acts by cigarette dealers; revising the provisions governing the disposal of certain contraband cigarettes; providing for a private right of action for injunctive relief regarding certain violations of chapter 370 of NRS; providing a penalty; and providing other matters properly relating thereto.
[Approved: June 5, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 370 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, a person may institute a civil action in a court of competent jurisdiction for appropriate injunctive relief if the person:
(a) Sells, distributes or manufactures cigarettes; and
(b) Sustains direct economic or commercial injury as a result of a violation of subsection 4 of NRS 370.240 or NRS 370.385.
2. Nothing in this section authorizes an action against this state, a political subdivision of this state, or an officer, employee or agency thereof.
Sec. 2. NRS 370.070 is hereby amended to read as follows:
370.070 The provisions of NRS 370.001 to 370.430, inclusive, do not apply to [common] :
1. Common carriers while engaged in interstate commerce which sell or furnish cigarettes on their trains, buses or airplanes [.] ;
2. A person entering this state with a quantity of cigarettes for household or personal use which is exempt from federal import duty; and
3. A duty-free sales enterprise as defined in 19 U.S.C. § 1555(b)(8)(D) that:
(a) Operates pursuant to the provisions of 19 U.S.C. § 1555(b); and
(b) To the extent it sells cigarettes, only sells cigarettes that are duty-free merchandise as defined in 19 U.S.C. § 1555(b)(8)(E).
Sec. 3. NRS 370.180 is hereby amended to read as follows:
370.180 1. The department shall:
(a) Design [a suitable stamp or] suitable stamps for the purpose of this chapter [.] which meet the requirements of this section; and
(b) From time to time, have as many revenue stamps printed as may be required.
2. Each stamp must be designed to permit the identification of the dealer who affixed the stamp to a package or other container of cigarettes. The dealer must be identified by a number or other mark on the stamp. The department shall maintain, for not less than 3 years after the date the stamp is provided to the dealer, a record of the information necessary to identify the dealer by examining the stamp. Upon request, the department shall provide to any person the information maintained pursuant to this subsection.
κ2001 Statutes of Nevada, Page 2136 (Chapter 422, SB 527)κ
shall provide to any person the information maintained pursuant to this subsection.
3. The use of a metered stamping machine approved by and registered with the department shall be subject to such regulations as prescribed by the department.
Sec. 4. NRS 370.240 is hereby amended to read as follows:
370.240 1. Each dealer authorized to purchase or affix cigarette revenue stamps shall report to the department:
(a) The inventory of all cigarettes in his possession or control at the close of business on the last day of each month.
(b) The total value of all cigarette revenue stamps affixed by him upon cigarette packages sold in or shipped into the state by him during the preceding month.
2. The report must be made by the 25th day of the month following shipments upon forms to be provided by the department.
3. The dealer may be allowed 5 additional days to file his report, if he makes prior written application to the department and the department finds good cause for extension.
4. If, during the preceding month, the dealer affixed cigarette revenue stamps upon cigarette packages imported into the United States, he shall file with the report a copy of each certificate submitted pursuant to 19 U.S.C. § 1681a(c) with regard to the cigarette packages.
Sec. 5. NRS 370.385 is hereby amended to read as follows:
370.385 1. A wholesale or retail dealer shall not affix a Nevada cigarette revenue stamp or a metered machine impression upon a package, carton, packet or other container of cigarettes which:
(a) Does not meet the requirements of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331 et seq., for the placement of labels, warnings or any other information required by that Act to be placed upon a container of cigarettes sold within the United States;
(b) Is labeled as for export only, U.S. tax exempt, for use outside the U.S. or with similar wording indicating that the manufacturer did not intend for the product to be sold in the United States;
(c) Has been altered by the unauthorized addition or removal of wording, labels or warnings described in paragraph (a) or (b);
(d) Has been exported from the United States after January 1, 2000, and imported into the United States in violation of 26 U.S.C. § 5754; [or]
(e) Has been imported into the United States in violation of 19 U.S.C. § 1681a;
(f) Was manufactured, packaged or imported by a person who has not complied with 15 U.S.C. § 1335a with regard to the cigarettes;
(g) Violates a federal trade-mark or copyright law [.] ; or
(h) Violates any other federal statute or regulation or with respect to which any federal statute or regulation has been violated.
2. A wholesale or retail dealer shall not:
(a) Affix Nevada cigarette revenue stamps or metered machine impressions on;
(b) Sell or distribute in this state; or
(c) Possess in this state with the intent to sell or distribute in this state,
cigarettes manufactured for export outside the United States.
κ2001 Statutes of Nevada, Page 2137 (Chapter 422, SB 527)κ
3. The department may impose a penalty on a wholesale or retail dealer who violates subsection 1 or 2 as follows:
(a) For the first violation, a penalty of $5,000.
(b) For each subsequent violation, a penalty of $10,000.
4. Notwithstanding any other provision of law, the department [may seize, destroy or sell to the manufacturer, for export only, a container of] shall seize and destroy cigarettes upon which a revenue stamp or metered machine impression was placed in violation of subsection 1 or 2.
5. As used in this section, cigarettes manufactured for export outside the United States means cigarettes contained in a package or carton which indicates that the cigarettes are tax exempt and for use outside the United States.
Sec. 6. NRS 370.415 is hereby amended to read as follows:
370.415 1. The department, its agents, sheriffs within their respective counties and all other peace officers of the State of Nevada shall seize any contraband cigarettes found or located in the State of Nevada.
2. A sheriff or other peace officer who seizes cigarettes pursuant to this section shall provide written notification of the seizure to the department not later than 5 working days after the seizure. The notification must include the reason for the seizure.
3. After consultation with the department, the sheriff or other peace officer shall transmit the cigarettes to the department if:
(a) The cigarettes, except for revenue stamps or metered machine impressions being properly affixed as required by this chapter, comply with all state and federal statutes and regulations; and
(b) The department approves the transmission of the cigarettes.
4. Upon receipt of the cigarettes, the department shall dispose of the cigarettes as provided in subsection 4 of NRS 370.270.
5. If the sheriff or other peace officer does not transmit the cigarettes to the department, he shall destroy the cigarettes.
Sec. 7. The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.
Sec. 8. This act becomes effective on July 1, 2001.
________
Assembly Bill No. 187Committee on Ways and Means
CHAPTER 423
AN ACT making an appropriation to the legislative fund for additional equipment and software for information systems for the Legislative Counsel Bureau and the Nevada Legislature; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the legislative fund created by NRS 218.085 the sum of $700,000 for additional equipment and software for information systems for the Legislative Counsel Bureau and the Nevada Legislature.
κ2001 Statutes of Nevada, Page 2138 (Chapter 423, AB 187)κ
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 189Committee on Ways and Means
CHAPTER 424
AN ACT making an appropriation to the legislative fund for certain maintenance and rehabilitation projects on the legislative building; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the legislative fund created by NRS 218.085 the sum of $715,700 for the following maintenance and rehabilitation projects on the legislative building:
1. Rebuilding the west entry to the legislative building to remove the roof over the first floor and enclose the entry;
2. Maintaining and repairing the exterior surface of the legislative building;
3. Replacing the heating, ventilation and air-conditioning system in the Sedway Office Building; and
4. Resurfacing the floor of the main level of the parking garage.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after the projects are completed and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2139κ
Assembly Bill No. 285Assemblymen Parnell, Bache, Smith, Gibbons, Koivisto, McClain, Oceguera and Parks
CHAPTER 425
AN ACT relating to the state personnel system; creating the committee on catastrophic leave to hear appeals from decisions of appointing authorities regarding the use of such leave; prescribing the powers and duties of the committee; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 284 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. There is hereby created within the department the committee on catastrophic leave composed of five members appointed by the governor.
2. The committee must be composed of:
(a) Three members who are executive officers of state agencies; and
(b) Two members who are representatives of labor.
3. The members of the committee serve at the pleasure of the governor.
4. After the initial terms, each member of the committee serves for a term of 3 years. Each member of the committee continues in office until his successor is appointed. Any member of the committee may be reappointed.
5. A vacancy in the membership of the committee must be filled in the same manner as the original appointment for the remainder of the unexpired term.
6. The members of the committee serve without compensation, except that the members are entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally while engaged in the official business of the committee.
Sec. 3. 1. The members of the committee shall elect a chairman and vice chairman from among their members. After the initial election, the chairman and vice chairman serve in the office for a term of 1 year beginning on July 1 of each year. If a vacancy occurs in the chairmanship or vice chairmanship, the members of the committee shall elect a chairman or vice chairman from among their members to serve for the remainder of the unexpired term.
2. Any three members of the committee constitute a quorum, and a majority vote of the quorum is required to take action with respect to any matter.
3. The committee shall adopt:
(a) Rules for its own management; and
(b) Such rules of practice and procedure as are necessary to carry out its duties.
4. The committee shall hold such hearings as are necessary to carry out the provisions of section 4 of this act.
5. The director or his designee shall act as the nonvoting recording secretary of the committee.
κ2001 Statutes of Nevada, Page 2140 (Chapter 425, AB 285)κ
Sec. 4. 1. An employee aggrieved by any decision of an appointing authority made pursuant to NRS 284.362 to 284.3626, inclusive, may appeal from the decision by filing a written notice of appeal with the committee within 10 days after the date of the decision.
2. The committee shall:
(a) Within 5 days after receiving a notice of appeal, schedule a hearing on the merits of the appeal for a date not later than 20 days after its receipt of the notice.
(b) Cause notice of the date and time of the hearing to be given to the employee and the appointing authority by mail or by personal service.
(c) Conduct the hearing expeditiously and informally. Technical rules of evidence do not apply at the hearing.
3. The employee may file a written request with the committee to give preference in scheduling the hearing. The request must set forth facts showing that the seriousness of the alleged catastrophe requires an expedited appeal.
4. The employee may represent himself at the hearing or be represented by an attorney or other person of the employees own choosing.
5. The committee shall:
(a) Render a decision in writing within 10 days after the hearing, setting forth the reasons therefor.
(b) Cause notice of the decision to be given to the employee and the appointing authority by mail or by personal service.
6. The decision of the committee is final and is not subject to judicial review or the procedure for the adjustment of grievances pursuant to NRS 284.384.
7. A meeting or hearing held by the committee to carry out the provisions of this section and the committees deliberations on the information or evidence received are not subject to any provision of chapter 241 of NRS.
Sec. 5. NRS 284.362 is hereby amended to read as follows:
284.362 1. As used in NRS 284.362 to 284.3626, inclusive, [catastrophe means:
1.] and sections 2, 3 and 4 of this act:
(a) Catastrophe means:
(1) The employee is unable to perform the duties of his position because of a serious illness or accident which is life threatening or which will require a lengthy convalescence;
[2.] (2) There is a serious illness or accident which is life threatening or which will require a lengthy convalescence in the employees immediate family; or
[3.] (3) There is a death in the employees immediate family.
(b) Committee means the committee on catastrophic leave created pursuant to section 2 of this act.
2. The commission shall adopt regulations further defining catastrophe to ensure that the term is limited to serious calamities.
Sec. 6. NRS 284.3623 is hereby amended to read as follows:
284.3623 [1.] The appointing authority may approve the transfer of a specified number of hours of leave from the account for catastrophic leave to the account of any employee who the appointing authority determines is eligible to receive such leave.
κ2001 Statutes of Nevada, Page 2141 (Chapter 425, AB 285)κ
[2. The decision of the appointing authority concerning the approval of leave pursuant to subsection 1 is final and is not subject to judicial review or the procedure for the adjustment of grievances pursuant to NRS 284.384.]
Sec. 7. As soon as practicable after July 1, 2001, the governor shall appoint to the committee on catastrophic leave created pursuant to section 2 of this act:
1. One member who is an executive officer of a state agency and one member who is a representative of labor whose terms expire on July 1, 2002.
2. One member who is an executive officer of a state agency and one member who is a representative of labor whose terms expire on July 1, 2003.
3. One member who is an executive officer of a state agency whose term expires on July 1, 2004.
Sec. 8. This act becomes effective on July 1, 2001.
________
Assembly Bill No. 454Assemblymen Arberry, Giunchigliani, Collins, Anderson, Berman, Buckley, Dini, Goldwater, Manendo, Mortenson, Neighbors, Price and Tiffany
CHAPTER 426
AN ACT relating to the University and Community College System of Nevada; requiring the Board of Regents of the University of Nevada to appoint a committee to study the organizational structure of certain community colleges; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The Board of Regents of the University of Nevada shall appoint a committee to conduct a study of the organizational structure of any community college within the University and Community College System of Nevada that has an enrollment of more than 20,000 students.
2. The committee appointed pursuant to subsection 1 must consist of members of the Board of Regents, members of each community in which the campus of each such community college is located, and any other persons deemed appropriate for membership by the Board of Regents.
3. The committee shall:
(a) Review the administrative structure of each such community college; and
(b) Determine whether the administrative structure allows each campus of the community college to operate at maximum effectiveness and whether the needs of each campus for executive leadership are being met.
4. The Board of Regents shall, not later than January 1, 2003, submit a report of the findings of the committee, including any recommended legislation, to the Director of the Legislative Counsel Bureau for transmittal to the 72nd session of the Nevada Legislature.
Sec. 2. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 2142κ
Assembly Bill No. 507Committee on Ways and Means
CHAPTER 427
AN ACT making an appropriation to the State Department of Conservation and Natural Resources for a radio connection between the Nevada State Park System and the Department of Motor Vehicles and Public Safety; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the State Department of Conservation and Natural Resources the sum of $193,323 for a radio connection between the Nevada State Park System and the Department of Motor Vehicles and Public Safety.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 517Committee on Ways and Means
CHAPTER 428
AN ACT making an appropriation to the Department of Human Resources for furnishings and equipment for the Division of Child and Family Services; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $117,244 for furnishings and equipment for the Division of Child and Family Services.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2143κ
Assembly Bill No. 524Committee on Ways and Means
CHAPTER 429
AN ACT making an appropriation to the Department of Information Technology for phase IIA of the digital microwave upgrade; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Information Technology the sum of $4,641,986 for phase IIA of the digital microwave upgrade.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 527Committee on Ways and Means
CHAPTER 430
AN ACT making an appropriation to the Legislative Counsel Bureau for new and replacement equipment and various maintenance projects; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the legislative fund created by NRS 218.085 the sum of $747,823 for new and replacement equipment and various maintenance projects for the Legislative Counsel Bureau.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2144κ
Assembly Bill No. 529Committee on Ways and Means
CHAPTER 431
AN ACT making an appropriation to the Department of Human Resources for software and computer equipment for the Nevada rural health communications system; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $236,490 for software and computer equipment for the Nevada rural health communications system.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 531Committee on Ways and Means
CHAPTER 432
AN ACT making an appropriation to the Department of Human Resources for a vehicle, furnishings and equipment for the Nevada Youth Training Center within the Division of Child and Family Services; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $73,144 for a vehicle, furnishings and equipment for the Nevada Youth Training Center within the Division of Child and Family Services.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2145κ
Assembly Bill No. 532Committee on Ways and Means
CHAPTER 433
AN ACT making an appropriation to the Department of Human Resources for a vehicle, office equipment and remodeling for the Northern Nevada Child and Adolescent Services; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $72,892 for a vehicle, office equipment and remodeling for the Northern Nevada Child and Adolescent Services.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 533Committee on Ways and Means
CHAPTER 434
AN ACT making an appropriation to the Department of Business and Industry for the replacement of computers in the Consumer Affairs Division; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Business and Industry the sum of $15,150 for the replacement of computers in the Consumer Affairs Division.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2146κ
Assembly Bill No. 598Committee on Ways and Means
CHAPTER 435
AN ACT making an appropriation to the Department of Human Resources for an enhanced health clinic for the Jan Evans Juvenile Justice Center; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $250,000 for an enhanced health clinic for the Jan Evans Juvenile Justice Center.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 627Committee on Commerce and Labor
CHAPTER 436
AN ACT relating to trade practices; authorizing the public utilities commission of Nevada to adopt regulations governing the disclosures that must be made by a provider of a telecommunications service to a customer before the customer is charged for the service; expanding the definition of deceptive trade practice to include certain advertising practices relating to goods or services; revising the provisions governing certificates of registration issued to certain registrants by the consumer affairs division; requiring the renewal of those certificates of registration; increasing the amount of the security that certain dance studios and health clubs are required to deposit with the consumer affairs division; requiring certain sellers of travel to register and deposit security with the consumer affairs division; authorizing certain consumers to bring and maintain actions to recover against the security; providing for the release of the security within a certain period after the seller of travel ceases to operate; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. (Deleted by amendment.)
Sec. 2. Chapter 598 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 13, inclusive, of this act.
Sec. 3. As used in sections 3 to 12, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 8, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 4. Commissioner means the commissioner of the consumer affairs division of the department of business and industry.
κ2001 Statutes of Nevada, Page 2147 (Chapter 436, AB 627)κ
Sec. 5. Division means the consumer affairs division of the department of business and industry.
Sec. 6. Seller of travel means a person who offers for sale, directly or indirectly, transportation by air, land, rail or water, travel services, vacation certificates or any combination thereof, to a person or group of persons for a fee, commission or other valuable consideration. The term:
1. Includes any person who offers membership in a travel club or any services related to travel for an advance fee or payment.
2. Does not include:
(a) A hotel that provides or arranges travel services for its patrons or guests;
(b) A person who, for compensation, transports persons or property by air, land, rail or water; or
(c) A tour broker or tour operator who is subject to the provisions of sections 2 to 14, inclusive, of Assembly Bill No. 245 of this session.
Sec. 7. Travel services includes, without limitation:
1. Short-term leases of passenger cars;
2. Lodging;
3. Transfers;
4. Sightseeing tours other than sightseeing tours for which a tour broker or tour operator is regulated pursuant to sections 2 to 14, inclusive, of Assembly Bill No. 245 of this session; and
5. Any other services that are related to travel by air, land, rail or water or any other method of transportation.
Sec. 8. Vacation certificate means any document received by a person for consideration paid in advance which evidences that the holder of the document is entitled to:
1. Transportation by air, land, rail or water; or
2. The use of lodging or other facilities for a specified period,
during the period for which the certificate is valid.
Sec. 9. 1. Before advertising its services or conducting business in this state, a seller of travel must register with the division by:
(a) Submitting to the division an application for registration on a form prescribed by the division;
(b) Paying to the division a fee of $25; and
(c) Depositing the security required pursuant to section 10 of this act, if any, with the division.
2. The division shall issue a certificate of registration to the seller of travel upon receipt of:
(a) The security in the proper form if the seller of travel is required to deposit security pursuant to section 10 of this act; and
(b) The payment of the fee required by this section.
3. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A seller of travel must renew a certificate of registration issued pursuant to this section before the certificate expires by:
(a) Submitting to the division an application for the renewal of the certificate on a form prescribed by the division; and
(b) Paying to the division a fee of $25.
Sec. 10. 1. Except as otherwise provided in subsection 8, each seller of travel shall deposit with the division:
κ2001 Statutes of Nevada, Page 2148 (Chapter 436, AB 627)κ
(a) A bond executed by a corporate surety approved by the commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the seller of travel is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the commissioner, except that the interest may accrue to the seller of travel.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $50,000.
4. If the seller of travel deposits a bond, the seller of travel shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the division during business hours. The seller of travel shall notify the division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the division.
5. The commissioner may reject any bond, letter of credit or certificate of deposit that fails to comply with the requirements of this chapter.
6. A seller of travel may change the form of security that he has deposited with the division. If the seller of travel changes the form of the security, the commissioner may retain for not more than 1 year any portion of the security previously deposited by the seller of travel as security for claims arising during the time the previous security was in effect.
7. If the amount of the deposited security falls below the amount required by this chapter for that security, the seller of travel shall be deemed not to be registered as required by section 9 of this act for the purposes of this chapter.
8. The provisions of this section do not apply to a seller of travel who is accredited by and appointed as an agent of the Airlines Reporting Corporation.
Sec. 11. 1. The security required to be deposited by a seller of travel pursuant to section 10 of this act must be held in trust for consumers injured as a result of:
(a) Any act of fraud or misrepresentation by the seller of travel acting in his capacity as a seller of travel;
(b) The bankruptcy of the seller of travel; or
(c) The breach of any contract entered into by the seller of travel in his capacity as a seller of travel.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The division may bring an action for interpleader against all claimants upon the security. If the division brings such an action, the division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the seller of travel has its principal place of business. The division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata.
κ2001 Statutes of Nevada, Page 2149 (Chapter 436, AB 627)κ
claims must be paid pro rata. If the seller of travel has posted a bond with the division, the surety is then relieved of all liability under the bond.
4. The division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the seller of travel has posted a bond with the division, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
Sec. 12. 1. If no claims have been filed against the security deposited with the division pursuant to section 10 of this act within 6 months after the seller of travel ceases to operate or his registration expires, whichever occurs later, the commissioner shall release the security to the seller of travel and shall not audit any claims filed against the security thereafter by consumers.
2. If one or more claims have been filed against the security within 6 months after the seller of travel ceases to operate or his registration expires, whichever occurs later, the proceeds must not be released to the seller of travel or distributed to any consumer earlier than 1 year after the seller of travel ceases to operate or his registration expires, whichever occurs later.
3. For the purposes of this section, the commissioner shall determine the date on which a seller of travel ceases to operate.
Sec. 13. The public utilities commission of Nevada may adopt regulations governing the disclosures that must be made by a provider to a customer before the customer may be charged for a telecommunications service.
Sec. 14. NRS 598.0915 is hereby amended to read as follows:
598.0915 A person engages in a deceptive trade practice if, in the course of his business or occupation, he:
1. Knowingly passes off goods or services for sale or lease as those of another [.] person.
2. Knowingly makes a false representation as to the source, sponsorship, approval or certification of goods or services for sale or lease.
3. Knowingly makes a false representation as to affiliation, connection, association with or certification by another [.] person.
4. Uses deceptive representations or designations of geographic origin in connection with goods or services for sale or lease.
5. Knowingly makes a false representation as to the characteristics, ingredients, uses, benefits, alterations or quantities of goods or services for sale or lease or a false representation as to the sponsorship, approval, status, affiliation or connection of a person therewith.
6. Represents that goods for sale or lease are original or new if he knows or should know that they are deteriorated, altered, reconditioned, reclaimed, used or secondhand.
7. Represents that goods or services for sale or lease are of a particular standard, quality or grade, or that such goods are of a particular style or model, if he knows or should know that they are of another [.] standard, quality, grade, style or model.
κ2001 Statutes of Nevada, Page 2150 (Chapter 436, AB 627)κ
8. Disparages the goods, services or business of another person by false or misleading representation of fact.
9. Advertises goods or services with intent not to sell or lease them as advertised.
10. Advertises goods or services for sale or lease with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity.
11. Advertises goods or services as being available free of charge with intent to require payment of undisclosed costs as a condition of receiving the goods or services.
12. Advertises under the guise of obtaining sales personnel when [in fact] the purpose is to first sell or lease goods or services to the sales personnel applicant.
[12.] 13. Makes false or misleading statements of fact concerning the price of goods or services for sale or lease, or the reasons for, existence of or amounts of price reductions.
[13.] 14. Fraudulently alters any contract, written estimate of repair, written statement of charges or other document in connection with the sale or lease of goods or services.
[14.] 15. Knowingly makes any other false representation in a transaction.
[15.] 16. Knowingly falsifies an application for credit relating to a retail installment transaction, as defined in NRS 97.115.
Sec. 15. NRS 598.0999 is hereby amended to read as follows:
598.0999 1. A person who violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, and section 1 of Assembly Bill No. 337 of this session upon a complaint brought by the commissioner, the director, the district attorney of any county of this state or the attorney general shall forfeit and pay to the state general fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing the order or injunction retains jurisdiction over the action or proceeding. Such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to 598.0999, inclusive, and section 1 of Assembly Bill No. 337 of this session.
2. In any action brought pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, and section 1 of Assembly Bill No. 337 of this session, if the court finds that a person has willfully engaged in a deceptive trade practice, the commissioner, the director, the district attorney of any county in this state or the attorney general bringing the action may recover a civil penalty not to exceed $2,500 for each violation. The court in any such action may, in addition to any other relief or reimbursement, award reasonable attorneys fees and costs.
3. A natural person, firm, or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice : [, other than a deceptive trade practice described in NRS 598.992:]
(a) For the first offense, is guilty of a misdemeanor.
(b) For the second offense, is guilty of a gross misdemeanor.
(c) For the third and all subsequent offenses, is guilty of a category D felony and shall be punished as provided in NRS 193.130.
κ2001 Statutes of Nevada, Page 2151 (Chapter 436, AB 627)κ
4. Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.
5. If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, and section 1 of Assembly Bill No. 337 of this session, 598.100 to 598.2801, inclusive, 598.281 to 598.289, inclusive, 598.840 to 598.966, inclusive, sections 2 to 14, inclusive, of Assembly Bill No. 245 of this [act or 598.992,] session or sections 3 to 12, inclusive, of this act, fails to comply with a judgment or order of any court in this state concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the commissioner or the district attorney of any county may bring an action in the name of the State of Nevada seeking:
(a) The suspension of the persons privilege to conduct business within this state; or
(b) If the defendant is a corporation, dissolution of the corporation.
The court may grant or deny the relief sought or may order other appropriate relief.
Sec. 16. NRS 598.2806 is hereby amended to read as follows:
598.2806 1. Each credit service organization, organization for buying goods or services at a discount, dance studio and health club regulated by the provisions of this chapter shall apply for registration on the form prescribed by the division.
2. At the time of application for registration, the applicant [shall] must pay to the division an administrative fee of $25 and deposit the required security with the division.
3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the division shall issue a certificate of registration to the applicant. A certificate of registration [is] :
(a) Is not transferable or assignable [.] ; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the division an application for the renewal of the certificate on a form prescribed by the division.
Sec. 17. NRS 598.2808 is hereby amended to read as follows:
598.2808 1. The security required to be deposited by a registrant pursuant to NRS 598.2807 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrants breach of any agreement entered into in his capacity as a registrant.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The division may bring an action for interpleader against all claimants upon the security. If the division brings such an action, the division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata.
κ2001 Statutes of Nevada, Page 2152 (Chapter 436, AB 627)κ
pro rata. If the registrant has posted a bond with the division, the surety is then relieved of all liability under the bond.
4. The division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the division, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
Sec. 18. NRS 598.946 is hereby amended to read as follows:
598.946 1. Except as otherwise provided in subsection 5, before advertising its services or conducting business in this state, the owner of a dance studio or a health club must register pursuant to NRS 598.2806 and 598.944 and deposit security with the division pursuant to NRS 598.2807. The security must [be] :
(a) Be conditioned on compliance by the owner with the provisions of NRS 598.940 to 598.966, inclusive, and the terms of the contract with a buyer [.] ; and
(b) Remain on deposit with the division until the release of the security is authorized or required pursuant to NRS 598.2809, except that the dance studio or health club may change the form of the security as provided in NRS 598.2807.
2. Except as otherwise provided in subsection 3, the amount of the security to be deposited must be:
(a) Ten thousand dollars, if the dance studio or health club has less than 400 members;
(b) Fifteen thousand dollars, if the dance studio or health club has 400 members or more but less than 800 members;
(c) Twenty thousand dollars, if the dance studio or health club has 800 members or more but less than 1,200 members;
(d) Twenty-five thousand dollars, if the dance studio or health club has 1,200 members or more but less than 1,500 members;
(e) Thirty-five thousand dollars, if the dance studio or health club has 1,500 members or more but less than 4,000 members; [and]
(f) Fifty thousand dollars, if the dance studio or health club has 4,000 members or more but less than 25,000 members [.] ; and
(g) Two hundred and fifty thousand dollars, if the dance studio or health club has 25,000 or more members.
3. If a dance studio or health club conducts any pre-sale of dance lessons, the use of facilities or other services, the amount of the security required by this section is $100,000 [.] unless a greater amount is required pursuant to paragraph (g) of subsection 2.
4. A dance studio or health club shall report to the division on a quarterly basis the size of its membership and shall, on the basis of any change in the size of that membership, adjust accordingly the amount of the security deposited with the division.
5. [If a dance studio or health club has actively conducted business for not less than 4 consecutive years and has not changed ownership or, in the case of a corporation, not more than 25 percent of its authorized shares have been transferred, it is not required to deposit security with the division pursuant to NRS 598.2807.]
κ2001 Statutes of Nevada, Page 2153 (Chapter 436, AB 627)κ
been transferred, it is not required to deposit security with the division pursuant to NRS 598.2807.] If , on October 1, 2001, a dance studio or health club [does not deposit such security, it shall] has not deposited security with the division pursuant to NRS 598.2807 because it was not required to do so pursuant to this section, the dance studio or health club:
(a) Is not required to deposit security with the division pursuant to NRS 598.2807; and
(b) Shall obtain a written acknowledgment from each member and prominently post a notice on its premises stating that no security for refunds or reimbursement has been deposited with the State of Nevada.
Sec. 19. NRS 598.968 is hereby amended to read as follows:
598.968 As used in NRS 598.968 to 598.9694, inclusive, and section 13 of this act, unless the context otherwise requires, the words and terms defined in NRS 598.9682 and 598.9684 have the meanings ascribed to them in those sections.
Sec. 20. NRS 598.992 is hereby repealed.
Sec. 21. 1. Notwithstanding the provisions of section 16 of this act, a registrant that:
(a) Is doing business in this state; and
(b) Has a certificate of registration that was issued by the division pursuant to NRS 598.2806 before October 1, 2000,
must submit to the division an application for the renewal of the certificate of registration on a form prescribed by the division not later than October 1, 2001.
2. A registrant that:
(a) Is doing business in this state; and
(b) Has a certificate of registration that was issued by the division pursuant to NRS 598.2806 on or after October 1, 2000,
must submit to the division an application for the renewal of the certificate of registration on a form prescribed by the division not later than 1 year after the certificate of registration was issued by the division.
3. As used in this section, registrant has the meaning ascribed to it in NRS 598.2805.
Sec. 22. 1. This section, sections 1 to 13, inclusive, and 16 to 21, inclusive, of this act become effective on October 1, 2001.
2. Sections 14 and 15 of this act become effective at 12:01 a.m. on October 1, 2001.
________
κ2001 Statutes of Nevada, Page 2154κ
Assembly Bill No. 115Committee on Ways and Means
CHAPTER 437
AN ACT relating to the state department of agriculture; expanding the types of fees that must be used in the plant industry program and expanding the purposes for which expenditures for the plant industry program may be made; abolishing the apiary inspection account; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 561.355 is hereby amended to read as follows:
561.355 1. The plant industry program is hereby established.
2. The following fees and money [shall] must be used in the plant industry program:
(a) Fees and money collected pursuant to the provisions of chapters 552, 555, 581, 582 and 587 of NRS.
(b) Laboratory fees collected for the diagnosis of infectious, contagious and parasitic diseases of bees, as authorized by NRS 561.305, and as are necessary pursuant to the provisions of chapter 552 of NRS.
(c) Laboratory fees collected for the diagnosis of infectious, contagious and destructive diseases of agricultural commodities, and infestations thereof by pests, as authorized by NRS 561.305, and as may be necessary [under] pursuant to the provisions of NRS 554.010 to 554.240, inclusive.
[(c)] (d) Laboratory fees collected for the survey and identification of insect pests, plant diseases and noxious weeds, as authorized by NRS 561.305, and as may be necessary [under] pursuant to the provisions of NRS 555.010 to 555.249, inclusive.
[(d)] (e) Laboratory fees collected for the testing of the purity and germinating power of agricultural seeds, as authorized by NRS 561.305, and as may be necessary [under] pursuant to the provisions of NRS 587.015 to 587.123, inclusive.
3. Expenditures for the plant industry program [shall] must be made only for the purposes of carrying out the provisions of this chapter and chapters 552, 554, 555, 581, 582 and 587 of NRS . [, and the provisions of this chapter.]
Sec. 2. NRS 552.300 is hereby amended to read as follows:
552.300 1. Upon presentation of satisfactory evidence by the state quarantine officer, the chief inspector or any deputy inspector of the violation of any of the provisions of this chapter, any district attorney shall, without delay, prosecute the person who has violated any of the provisions of this chapter.
2. The department may employ counsel to assist in the prosecution of any person charged with the violation of any of the provisions of this chapter and compensate the counsel so employed from the [apiary inspection account.] plant industry program.
Sec. 3. NRS 561.365 is hereby repealed.
Sec. 4. This act becomes effective on July 1, 2001.
________
κ2001 Statutes of Nevada, Page 2155κ
Assembly Bill No. 503Committee on Ways and Means
CHAPTER 438
AN ACT making an appropriation to the Department of Business and Industry for the replacement of certain computers in the Office of the Labor Commissioner; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Business and Industry the sum of $15,867 for the replacement of certain computers in the Office of the Labor Commissioner.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 506Committee on Ways and Means
CHAPTER 439
AN ACT making an appropriation to the State Department of Conservation and Natural Resources for maintenance projects at state parks; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the State Department of Conservation and Natural Resources the sum of $593,928 for maintenance projects at state parks.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2156κ
Assembly Bill No. 514Committee on Ways and Means
CHAPTER 440
AN ACT making an appropriation to the Interim Finance Committee for allocation to the Department of Human Resources for an electronic application process for the Nevada Check Up program and Medicaid assistance; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. There is hereby appropriated from the state general fund to the Interim Finance Committee the sum of $500,000 for allocation to the Department of Human Resources for the costs of developing and converting to an electronic application process for the Nevada Check Up program and Medicaid assistance.
2. The Department of Human Resources may submit a request to the Interim Finance Committee for the allocation of all or any part of the money appropriated by subsection 1 at any time. Any such request must include a plan for the development of and conversion to the new electronic application process, in addition to a description of the proposed new process.
3. Upon receipt of a request from the Department of Human Resources for the allocation of money appropriated by subsection 1, the Interim Finance Committee shall consider the request and may require any additional information that it determines is necessary to make a final decision.
4. Upon considering a request submitted by the Department of Human Resources, and any additional information requested, the Interim Finance Committee shall determine whether to allocate all or any portion of the money appropriated by subsection 1. The Interim Finance Committee is not required to approve the entire funding in any request or to allocate the entire amount appropriated. If the Interim Finance Committee makes an allocation of money pursuant to this section, it shall require such documentation and reporting as it deems necessary. Any change from the plans for the development of or conversion to the new process that were submitted with the request for the allocation must be approved by the Interim Finance Committee before money is committed for expenditure on the portion that is changed.
5. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 2. This act becomes effective upon passage and approval.
________
κ2001 Statutes of Nevada, Page 2157κ
Assembly Bill No. 516Committee on Ways and Means
CHAPTER 441
AN ACT making an appropriation to the Department of Human Resources for the Medicaid Management Information System; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Human Resources the sum of $2,090,840 for the Medicaid Management Information System.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 523Committee on Ways and Means
CHAPTER 442
AN ACT making appropriations to the Motor Pool Division of the Department of Administration and the Investigation Division of the Department of Motor Vehicles and Public Safety for the purchase of additional vehicles; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. There is hereby appropriated from the state general fund to the Motor Pool Division of the Department of Administration the sum of $1,749,874 for the purchase of additional vehicles.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 2. 1. There is hereby appropriated from the state general fund to the Investigation Division of the Department of Motor Vehicles and Public Safety the sum of $274,012 for the purchase of motor vehicles.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
κ2001 Statutes of Nevada, Page 2158 (Chapter 442, AB 523)κ
Sec. 3. 1. There is hereby appropriated from the state highway fund to the Investigation Division of the Department of Motor Vehicles and Public Safety the sum of $22,341 for the purchase of a motor vehicle.
2. Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2003, and reverts to the state highway fund as soon as all payments of money committed have been made.
Sec. 4. This act becomes effective upon passage and approval.
________
Assembly Bill No. 525Committee on Ways and Means
CHAPTER 443
AN ACT making an appropriation to the Supreme Court of Nevada for security system upgrades, a system-wide website and communications infrastructure, and new and replacement equipment; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Supreme Court of Nevada the sum of $395,028 for security system upgrades, a system-wide website and communications infrastructure, and new and replacement equipment.
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 526Committee on Ways and Means
CHAPTER 444
AN ACT making an appropriation to the Department of Taxation for the purchase of new and replacement equipment; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the state general fund to the Department of Taxation the sum of $454,173 for the purchase of new and replacement equipment.
κ2001 Statutes of Nevada, Page 2159 (Chapter 444, AB 526)κ
Sec. 2. Any remaining balance of the appropriation made by section 1 of this act must not be committed for expenditure after June 30, 2003, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective upon passage and approval.
________
Assembly Bill No. 554Committee on Government Affairs
CHAPTER 445
AN ACT relating to higher education; requiring the state treasurer to adopt regulations to establish and carry out the Nevada college savings program as authorized by federal law; creating the Nevada college savings trust fund and providing for its administration; eliminating the prospective expiration of various provisions governing the program for the prepayment of tuition at an institution of higher education; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 353B of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 13, inclusive, of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, board means the board of trustees of the college savings plans of Nevada created by section 3 of this act.
Sec. 3. 1. There is hereby created a board of trustees of the college savings plans of Nevada.
2. The board consists of five members composed of:
(a) The state treasurer, who may name a designee to serve on the board on his behalf.
(b) The director of the department of administration, who may name a designee to serve on the board on his behalf.
(c) The chancellor of the system, who may name a designee to serve on the board on his behalf.
(d) Two members appointed by the governor. A member who is appointed by the governor must possess knowledge, skill and experience in the field of:
(1) Accounting;
(2) Finance;
(3) Investment management; or
(4) Marketing.
3. A member of the board who is appointed by the governor:
(a) Serves for a term of 4 years;
(b) Except as otherwise provided in paragraph (c), may be reappointed by the governor; and
(c) Except as otherwise provided in this paragraph, may serve for only two terms. A member who is appointed to fill a vacancy in an unexpired term that is not longer than 3 years may serve two terms in addition to the unexpired term.
κ2001 Statutes of Nevada, Page 2160 (Chapter 445, AB 554)κ
4. The state treasurer or his designee shall serve as the chairman of the board.
5. Each member of the board serves without compensation, except that each member is entitled to receive:
(a) The per diem allowance and travel expenses provided for state officers and employees generally; and
(b) Reimbursement for any other actual and reasonable expense incurred while performing his duties.
6. As used in this section, the term college savings plans of Nevada includes the Nevada higher education prepaid tuition program set forth in NRS 353B.010 to 353B.810, inclusive, and the Nevada college savings program set forth in sections 6 to 13, inclusive, of this act.
Sec. 4. Notwithstanding the provisions of any specific statute to the contrary, no money on deposit in a prepaid tuition contract pursuant to NRS 353B.010 to 353B.810, inclusive, or a savings trust account pursuant to sections 6 to 13, inclusive, of this act may be considered an asset of a parent, guardian or student for the purpose of determining the eligibility of a person for a grant, scholarship or work opportunity that is based on need and offered or administered by a state agency, except as otherwise required by the source of the funding of the grant, scholarship or work opportunity.
Sec. 5. The board may endorse insurance coverage written exclusively to protect prepaid tuition contracts, and purchasers and beneficiaries of prepaid tuition contracts pursuant to NRS 353B.010 to 353B.810, inclusive, and the regulations adopted pursuant thereto, and savings trust accounts and account owners, and beneficiaries of savings trust accounts pursuant to sections 6 to 13, inclusive, of this act, and the regulations adopted pursuant thereto, which may be issued in the form of a group life policy. The provisions of Title 57 of NRS are not applicable to the board in carrying out the provisions of this section.
Sec. 6. As used in sections 6 to 13, inclusive, of this act, unless the context otherwise requires, trust fund means the Nevada college savings trust fund created by section 8 of this act.
Sec. 7. 1. The state treasurer shall adopt regulations to establish and carry out the Nevada college savings program, which must comply with the requirements of a qualified state tuition program pursuant to 26 U.S.C. § 529.
2. The regulations must be consistent with the provisions of the Internal Revenue Code set forth in Title 26 of the United States Code, and the regulations adopted pursuant thereto, to ensure that the Nevada college savings program meets all criteria for federal tax-deferred or tax-exempt benefits, or both.
3. The regulations must provide for the use of savings trust agreements and savings trust accounts to apply distributions toward qualified higher education expenses at eligible educational institutions in accordance with 26 U.S.C. § 529.
4. The regulations may include any other provisions not inconsistent with federal law that the state treasurer determines are necessary for the efficient and effective administration of the Nevada college savings program and the trust fund.
κ2001 Statutes of Nevada, Page 2161 (Chapter 445, AB 554)κ
Sec. 8. 1. The Nevada college savings trust fund is hereby created.
2. The trust fund is an instrumentality of this state, and its property and income are exempt from all taxation by this state and any political subdivision thereof.
3. The trust fund consists of:
(a) All legislative appropriations made thereto;
(b) All money acquired by or for the use of the trust fund from:
(1) Any other governmental source, including, without limitation, any grant from the Federal Government, or a state or local government; or
(2) Any private source, including, without limitation, any gift, bequest, devise or endowment;
(c) All money deposited in accordance with savings trust agreements; and
(d) All earnings on the money in the trust fund.
4. All money deposited in accordance with savings trust agreements and all earnings on such money:
(a) Are not the property of this state, and this state has no claim to or interest in such money; and
(b) Must not be commingled with money of this state.
5. A savings trust agreement or any other contract entered into by or on behalf of the trust fund does not constitute a debt or obligation of this state, and no account owner is entitled to any money in the trust fund except for that money on deposit in or accrued to his account.
6. The money in the trust fund must be preserved, invested and expended solely pursuant to and for the purposes authorized by sections 6 to 13, inclusive, of this act and must not be loaned or otherwise transferred or used by this state for any other purpose.
Sec. 9. 1. The trust fund must be administered by the state treasurer.
2. The state treasurer shall establish such accounts within the trust fund as he determines necessary, including, without limitation, a program account, an administrative account and an endowment account.
3. The program account must be used for the receipt, investment and disbursement of money pursuant to savings trust agreements.
4. The administrative account must be used for the deposit and disbursement of money to administer and market the Nevada college savings program and to supplement the administration and marketing of the Nevada higher education prepaid tuition program set forth in NRS 353B.010 to 353B.810, inclusive.
5. The endowment account must be used for the deposit of any money received by the trust fund that is not received pursuant to a savings trust agreement and, in the determination of the state treasurer, is not necessary for the use of the administrative account. The money in the endowment account may be expended for any purpose related to the Nevada college savings program or otherwise to assist the residents of this state to attain post-secondary education.
Sec. 10. The state treasurer may accept and expend on behalf of the trust fund money provided by private entities for direct expenses or marketing. Such money is not a part of the trust fund.
Sec. 11. 1. The board shall establish a comprehensive investment plan for the money in the trust fund.
2. Notwithstanding the provisions of any specific statute to the contrary, the board may invest or cause to be invested any money in the trust fund, including, without limitation, the money in the program account, in any manner reasonable and appropriate to achieve the objectives of the Nevada college savings program, exercising the discretion and care of a prudent person in similar circumstances with similar objectives.
κ2001 Statutes of Nevada, Page 2162 (Chapter 445, AB 554)κ
trust fund, including, without limitation, the money in the program account, in any manner reasonable and appropriate to achieve the objectives of the Nevada college savings program, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. The board shall consider the risk, expected rate of return, term or maturity, diversification of total investments, liquidity and anticipated investments in and withdrawals from the trust fund.
3. The board may establish criteria and select investment managers, mutual funds or other such entities to act as investment managers for the Nevada college savings program.
4. The board may employ or contract with investment managers, evaluation services or other services as determined by the board to be necessary for the effective and efficient operation of the Nevada college savings program.
5. The board may employ personnel and contract for goods and services necessary for the effective and efficient operation of the Nevada college savings program.
6. The marketing plan and materials for the Nevada college savings program must be approved by the board.
7. The board may prescribe terms and conditions of savings trust agreements.
8. The board may contract with one or more qualified entities for the day-to-day operations of the Nevada college savings program as the program administrator for the management of the marketing of the program, the administration of the comprehensive investment plan and trust fund, the selection of investment managers for the Nevada college savings program, and the performance of similar activities.
9. All contracts authorized by this section are subject to the requirements of chapter 333 of NRS, except that:
(a) Notwithstanding the provisions of subsection 1 of NRS 333.165 to the contrary, the board shall contract for all services regardless of the estimated value of the services; and
(b) Notwithstanding the provisions of NRS 333.335 to the contrary, each proposal received by the board concerning services must be evaluated by the board at a public meeting and each contract for services must be awarded by the board at a public meeting.
Sec. 12. Savings trust accounts and agreements entered into pursuant to sections 6 to 13, inclusive, of this act are not guaranteed by the full faith and credit of the State of Nevada.
Sec. 13. The board may delegate to the state treasurer any of its administrative powers and duties specified in sections 6 to 13, inclusive, of this act, if the board determines that such delegation is necessary for the efficient and effective administration of the Nevada college savings program and the trust fund.
Sec. 14. NRS 353B.010 is hereby amended to read as follows:
353B.010 As used in [this chapter,] NRS 353B.010 to 353B.810, inclusive, unless the context otherwise requires, the words and terms defined in NRS [353B.020] 353B.030 to 353B.070, inclusive, have the meanings ascribed to them in those sections.
Sec. 15. NRS 353B.070 is hereby amended to read as follows:
353B.070 Trust fund means the Nevada higher education prepaid tuition trust fund created pursuant to NRS 353B.140.
κ2001 Statutes of Nevada, Page 2163 (Chapter 445, AB 554)κ
Sec. 16. NRS 353B.090 is hereby amended to read as follows:
353B.090 1. The board shall develop [a] the Nevada higher education prepaid tuition program for the prepayment of tuition at a guaranteed rate which is established based on the annual actuarial study required pursuant to NRS 353B.190 for undergraduate studies at a university or community college that is a member of the system.
2. The board shall [establish rules] adopt regulations for the implementation of the program, including, without limitation, [rules] regulations setting forth requirements for residency, a limit on the number of qualified beneficiaries, the termination, withdrawal and transfer of money paid into the trust fund, the time within which the money paid into the trust fund must be used, and payment schedules.
Sec. 17. NRS 353B.140 is hereby amended to read as follows:
353B.140 1. The Nevada higher education prepaid tuition trust fund is hereby created within the state treasury to allow the cost of tuition to be paid in advance of enrollment at an institution of higher education.
2. The trust fund consists of payments received pursuant to:
(a) A prepaid tuition contract;
(b) A bequest, endowment or grant from the Federal Government; or
(c) Any other public or private source of money.
3. Money in the trust fund that is not expended during any biennium does not revert to the state general fund at any time.
Sec. 18. NRS 353B.150 is hereby amended to read as follows:
353B.150 1. The state treasurer shall administer the trust fund.
2. As administrator of the trust fund, the state treasurer:
(a) Shall maintain the financial records of the trust fund;
(b) Shall invest the property in the trust fund pursuant to the policies for investment established by the board pursuant to NRS 353B.160;
(c) Shall manage any account associated with the trust fund;
(d) Shall maintain any instruments that evidence investments made with property from the trust fund;
(e) May contract with vendors for any good or service that is necessary to carry out the provisions of [this chapter;] NRS 353B.010 to 353B.810, inclusive;
(f) May hire such employees as are necessary to carry out the provisions of [this chapter,] NRS 353B.010 to 353B.810, inclusive, who must be paid out of the assets of the trust fund; and
(g) May perform any other duties necessary to administer the trust fund.
Sec. 19. NRS 353B.160 is hereby amended to read as follows:
353B.160 1. The board shall create a comprehensive plan that specifies the policies for investment which the state treasurer shall follow in his administration of the trust fund.
2. The board may authorize the state treasurer to invest the property of the trust fund in:
(a) A bond, note, certificate or other general obligation of the State of Nevada, or of a county, city, general improvement district or school district of the State of Nevada.
(b) A corporate bond of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States with a rating not lower than A or its equivalent by a nationally recognized rating service. The total amount invested in such bonds must not exceed 50 percent of the book value of the total fixed income investments of the trust fund.
κ2001 Statutes of Nevada, Page 2164 (Chapter 445, AB 554)κ
percent of the book value of the total fixed income investments of the trust fund.
(c) Commercial paper of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States or of a wholly owned subsidiary of such a corporation with a rating not lower than A-3 or P-3 by a nationally recognized rating service.
(d) A bond, note, debenture or other valid obligation that is issued by the Treasury of the United States.
(e) A bond, note, debenture or other security that is issued by an agency or instrumentality of the United States or that is fully guaranteed by the United States in:
(1) The Federal Farm Credit Bank;
(2) The Federal National Mortgage Association;
(3) The Federal Home Loan Bank;
(4) The Federal Home Loan Mortgage Corporation; or
(5) The Government National Mortgage Association.
(f) A bond, note, debenture or other security in the Student Loan Marketing Association, regardless of whether it is guaranteed by the United States.
(g) Collateralized mortgage obligations that are rated AAA or its equivalent by a nationally recognized rating service.
(h) Asset-backed securities that are rated AAA or its equivalent by a nationally recognized rating service.
(i) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as A or its equivalent, or better; and
(3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.
The total dollar amount invested in such mutual funds must not exceed 20 percent of the total dollar amount of the trust fund that is invested.
(j) Common or preferred stock of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States, if:
(1) The stock of the corporation is:
(I) Listed on a national stock exchange; or
(II) Traded in the over-the-counter market, if the price quotations for the over-the-counter stock are quoted by the National Association of Securities Dealers Automated Quotations System [(NASDAQ);] , NASDAQ;
(2) The outstanding shares of the corporation have a total market value of not less than $50,000,000;
(3) The maximum investment in stock is not greater than 60 percent of the book value of the total investments of the trust fund;
(4) Except for investments made pursuant to paragraph (m), the amount of an investment in a single corporation is not greater than 3 percent of the book value of the assets of the trust fund; and
(5) Except for investments made pursuant to paragraph (m), the total amount of shares owned by the trust fund is not greater than 5 percent of the outstanding stock of a single corporation.
(k) A covered call or put option on securities that are traded on one or more of the regulated exchanges in the United States.
κ2001 Statutes of Nevada, Page 2165 (Chapter 445, AB 554)κ
(l) A pooled or commingled real estate fund or a real estate security that is managed by a corporate trustee or by an investment advisory firm that is registered with the Securities and Exchange Commission, either of which may be retained by the board as an investment manager. The shares and the pooled or commingled fund must be held in trust. The total book value of an investment made under this paragraph must not at any time be greater than 5 percent of the total book value of all investments of the trust fund.
(m) Mutual funds or common trust funds that consist of any combination of the investments listed in paragraphs (a) to (l), inclusive.
3. The state treasurer shall exercise the standard of care in investing the property of the fund that a person of prudence, discretion and intelligence would exercise in the management of his own affairs, given the prevailing circumstances, not in regard to speculation but rather to the permanent disposition of the property, considering the potential income from and the probable safety of his capital.
4. Subject to the terms, conditions, limitations and restrictions set forth in this section, the state treasurer may sell, assign, transfer or dispose of the property and investments of the trust fund upon the approval of a majority of the board.
5. The assets of the trust fund:
(a) Must be maintained, invested and expended solely for the purposes of [this chapter;] NRS 353B.010 to 353B.810, inclusive; and
(b) Must not be loaned, transferred or otherwise used for a purpose other than the purposes of [this chapter.] NRS 353B.010 to 353B.810, inclusive.
6. The state treasurer shall credit any income derived from an investment or a gain from a sale or exchange of an investment to the trust fund.
7. The state treasurer shall acquire each investment for the trust fund at a price not to exceed the prevailing market value for such an investment.
8. Each investment in the trust fund must be clearly marked to indicate ownership by the trust fund.
9. The state treasurer, an employee of the state treasurer, or a member or employee of the board shall not:
(a) Have a direct or indirect interest in the income, gain or profit of an investment that the state treasurer makes;
(b) Receive pay or emolument for his services in connection with an investment that the state treasurer makes; or
(c) Become an endorser, surety or obligor for money that is borrowed from the trust fund.
10. If the annual actuarial study performed pursuant to NRS 353B.190 reveals that there is insufficient money to ensure the actuarial soundness of the trust fund, the board shall modify the terms of subsequent prepaid tuition contracts.
11. The terms, conditions, limitations and restrictions regarding investments of the trust fund listed in this section apply only at the time an investment is originally acquired and must not be construed to require the liquidation of an investment at any time.
Sec. 20. NRS 353B.810 is hereby amended to read as follows:
353B.810 The provisions of [this chapter] NRS 353B.010 to 353B.810, inclusive, must not be construed as a promise or guarantee that a qualified beneficiary:
1. Will be admitted to, allowed to continue enrollment at or graduated from a community college or university; or
κ2001 Statutes of Nevada, Page 2166 (Chapter 445, AB 554)κ
2. Will have the full cost of his tuition paid at a community college, college or university that is not a member of the system.
Sec. 21. Section 25 of chapter 687, Statutes of Nevada 1997, at page 3489, is hereby amended to read as follows:
Sec. 25. [1.] This act becomes effective on October 1, 1997 . [, and, except as otherwise provided in subsection 2, expires by limitation when the board notifies the governor pursuant to subsection 1 of section 24 of this act that it has performed all duties and obligations pursuant to any prepaid tuition contract entered into before July 1, 2001.
2. Sections 12, 13 and 14 of this act expire by limitation on July 1, 2001.]
Sec. 22. Section 5 of chapter 141, Statutes of Nevada 1999, at page 803, is hereby amended to read as follows:
Sec. 5. [1.] This act becomes effective upon passage and approval.
[2. The amendatory provisions of section 1 of this act expire by limitation when the board notifies the governor pursuant to subsection 1 of section 24 of chapter 687, Statutes of Nevada 1997, that it has performed all duties and obligations pursuant to any prepaid tuition contract entered into before July 1, 2001.]
Sec. 23. 1. NRS 353B.020 and 353B.080 are hereby repealed.
2. Section 24 of chapter 687, Statutes of Nevada 1997, at page 3489, is hereby repealed.
Sec. 24. This act becomes effective upon passage and approval.
________
Assembly Bill No. 618Committee on Commerce and Labor
CHAPTER 446
AN ACT relating to insurance; providing for the regulation of the business of viatical settlements; requiring the commissioner of insurance to adopt regulations governing the use of electronic records and signatures; temporarily authorizing the adoption of regulations to enforce federal law concerning a bill of rights for patients; limiting the disclosure of certain information concerning consumers; providing for the conversion of domestic mutual insurers into domestic stock insurers; providing for the reorganization of domestic mutual insurers into mutual insurance holding companies; making various other changes concerning the regulation of insurance; providing penalties; and providing other matters properly relating thereto.
[Approved: June 6, 2001]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 57 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 52, inclusive, of this act.
Sec. 2. As used in sections 2 to 52, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 16, inclusive, of this act have the meanings ascribed to them in those sections.
κ2001 Statutes of Nevada, Page 2167 (Chapter 446, AB 618)κ
Sec. 3. Advertising means a written, electronic or printed communication or a communication by recorded telephone message, radio, television, the Internet or a similar medium of communication, including a film strip, motion picture or videotape, published, communicated or otherwise placed before the public to create an interest in, or induce a person to sell a policy of life insurance pursuant to, a viatical settlement.
Sec. 4. Broker of viatical settlements means a person who on behalf of a viator and for a fee, commission or other valuable consideration offers or attempts to negotiate a viatical settlement between the viator and one or more providers of viatical settlements. The term does not include an attorney at law, certified public accountant or financial planner accredited by a nationally recognized accrediting agency who is retained by the viator and whose compensation is not paid by a provider or purchaser of viatical settlements.
Sec. 5. Business of viatical settlements means the offering, solicitation, negotiation, procurement, effectuation, purchasing, financing, monitoring, tracking, underwriting, selling, transferring, pledging or otherwise hypothecating viatical settlements.
Sec. 6. Chronically ill means:
1. Being unable to perform at least two activities of daily living, such as eating, moving from one place to another, bathing, dressing, continence, defecation or urination;
2. Requiring substantial supervision for protection from threats to health and safety because of cognitive impairment; or
3. Having a level of disability similar to that described in subsection 1 as determined by the Secretary of Health and Human Services.
Sec. 7. 1. Financing agent means an underwriter, agent for placement, enhancer of credit, lender, purchaser of securities, purchaser of a policy from a provider of viatical settlements or other person that may enter into a viatical settlement and has direct ownership in a policy that is the subject of the viatical settlement but:
(a) Whose principal activity related to the transaction is providing money to effect the viatical settlement; and
(b) Who has an agreement in writing with one or more licensed providers of viatical settlements to finance the acquisition of one or more viatical settlements.
2. The term does not include a nonaccredited investor or a purchaser of viatical settlements.
Sec. 8. Policy means an individual or group policy, group certificate, contract or arrangement of life insurance affecting the rights of a person, whether or not delivered or issued for delivery in this state.
Sec. 9. Provider of viatical settlements means a person other than a viator who enters into or effectuates a viatical settlement. The term does not include:
1. A bank, savings and loan association, thrift company, credit union or other licensed lender that takes an assignment of a policy as security for a loan;
2. The issuer of a policy that provides accelerated benefits pursuant to the contract;
3. An authorized or eligible insurer that provides stop-loss coverage to a provider or purchaser of viatical settlements;
κ2001 Statutes of Nevada, Page 2168 (Chapter 446, AB 618)κ
4. A natural person who enters into no more than one agreement in a calendar year for the transfer of policies for a value less than the expected death benefit;
5. A financing agent;
6. A special organization;
7. A trust for a related provider; or
8. A purchaser of viatical settlements.
Sec. 10. Purchaser of viatical settlements means a person who gives a sum of money as consideration for a policy or an interest in the death benefits of a policy, or a person who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract or is the beneficiary of a policy that has been or will be the subject of a viatical settlement contract, for the purpose of deriving an economic benefit. The term does not include:
1. A person licensed pursuant to sections 2 to 52, inclusive, of this act;
2. An accredited investor or qualified institutional buyer as defined respectively in Regulation D, Rule 501 or Rule 144A of the Federal Securities Act of 1933, as amended;
3. A financing agent;
4. A special organization; or
5. A trust for a related provider.
Sec. 11. Special organization means an organization formed by a licensed provider of viatical settlements solely to enable the provider to gain access to institutional markets for capital.
Sec. 12. Terminally ill means having an illness that can reasonably be expected to result in death within 24 months.
Sec. 13. Trust for a related provider means a trust established by a licensed provider of viatical settlements solely to hold the ownership of or beneficial interests in purchased policies in connection with financing.
Sec. 14. Viatical settlement means a written agreement for the payment of money, or anything else of value, which is less than the expected death benefit of a policy, in exchange for the viators assignment, sale, transfer or devise of the death benefit or ownership of any portion of the policy. The term includes:
1. An agreement for a loan or other financing secured primarily by a policy, other than a loan by an insurer pursuant to or secured by the cash value of a policy; and
2. An agreement to transfer ownership or change the beneficiary, in the future, regardless of the date of payment to the viator.
Sec. 15. Viaticated policy means a policy that has been acquired by a provider of viatical settlements pursuant to a viatical settlement.
Sec. 16. Viator means the owner of a policy or the holder of a certificate of insurance under a policy of group insurance. The term is not limited to an owner who is terminally or chronically ill except where that limitation is expressly provided.
Sec. 17. The trustee of a trust for a related provider must agree in writing with the provider of viatical settlements that the provider is responsible for ensuring compliance with all statutory and regulatory requirements and that the trustee will make all records and files related to viatical settlements available to the commissioner as if those records and files were maintained directly by the provider.
κ2001 Statutes of Nevada, Page 2169 (Chapter 446, AB 618)κ
Sec. 18. If there is more than one viator with respect to a single policy and they are residents of different states, the legal effect of a viatical settlement is governed by the law of the state in which the viator having the largest fractional ownership resides. If the viators own equal fractions, they may agree in writing to choose the state in which one resides.
Sec. 19. 1. A person shall not, without first obtaining a license from the commissioner, operate in or from this state as a provider or broker of viatical settlements.
2. Application for a license must be made to the commissioner on a form prescribed by him, accompanied by the prescribed fee. A license may be renewed from year to year on its anniversary by payment of the prescribed fee. The license expires if the fee is not paid by that date.
3. An applicant shall provide information on forms required by the commissioner, who may at any time require the applicant to disclose the identity of all stockholders, partners, members, officers and employees. The commissioner may refuse to issue a license to an organization if he is not satisfied that a stockholder, partner, member or officer who may materially influence the applicants conduct satisfies the requirements of this chapter.
4. A license issued to an organization authorizes all partners, members, officers and designated employees to act as providers or brokers of viatical settlements. Those persons must be named in the application or a supplement to it.
Sec. 20. 1. Upon the filing of an application and payment of the fee, the commissioner shall investigate the applicant, and issue a license if he finds that the applicant:
(a) If a provider of viatical settlements, has set forth a detailed plan of operation;
(b) Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;
(c) Has a good reputation in business and, if a natural person, has had experience, training or education which qualifies him in that capacity;
(d) If an organization, provides a certificate of good standing from the state of its domicile; and
(e) If a provider or broker of viatical settlements, has included a plan to prevent fraud which satisfies the requirements of section 50 of this act.
2. The commissioner shall not issue a license to a nonresident unless a written designation of an agent for service of process, or an irrevocable written consent to the commencement of an action against the applicant by service of process upon the commissioner, accompanies the application.
3. A provider or broker of viatical settlements shall furnish to the commissioner new or revised information concerning partners, members, officers, holders of more than 10 percent of its stock, and designated employees within 30 days after a change occurs.
Sec. 21. After notice, and after a hearing if requested, the commissioner may suspend, revoke, refuse to issue or refuse to renew a license under this chapter if he finds that:
1. There was material misrepresentation in the application for the license;
2. The licensee or an officer, partner, member or significant managerial employee has been convicted of fraudulent or dishonest practices, is subject to a final administrative action for disqualification, or is otherwise shown to be untrustworthy or incompetent;
κ2001 Statutes of Nevada, Page 2170 (Chapter 446, AB 618)κ
3. A provider of viatical settlements has engaged in a pattern of unreasonable payments to viators;
4. The applicant or licensee has been found guilty of, or pleaded guilty or nolo contendere to, a felony or a misdemeanor involving fraud, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude, whether or not a judgment of conviction has been entered by the court;
5. A provider of viatical settlements has entered into a viatical settlement in a form not approved pursuant to section 22 of this act;
6. A provider of viatical settlements has failed to honor obligations of a viatical settlement;
7. The licensee no longer meets a requirement for initial licensure;
8. A provider of viatical settlements has assigned, transferred or pledged a viaticated policy to a person other than another provider licensed under this chapter, a purchaser of the viatical settlement, a special organization or a trust for a related provider;
9. The applicant or licensee has provided materially untrue information to an insurer that issued a policy that is the subject of a viatical settlement; or
10. The applicant or licensee has violated a provision of this chapter.
Sec. 22. A person shall not use a form of viatical settlement or of disclosure in this state unless the form has been filed with and approved by the commissioner. The commissioner shall disapprove such a form if, in his opinion, the settlement or any of its terms is unreasonable, contrary to the interests of the public or otherwise misleading or unfair to the viator. The commissioner may require the submission of advertising material before its use.
Sec. 23. 1. Each licensee under this chapter shall file with the commissioner on or before March 1 of each year an annual statement containing such information as the commissioner prescribes by regulation.
2. Except as allowed or required by a statute other than this chapter, a provider or broker of viatical settlements, an insurer, a producer of insurance, an information bureau, a rating agency or any other person knowing the identity of an insured shall not disclose that identity as an insured to any other person unless the disclosure is:
(a) Necessary to effect a viatical settlement between the viator and a provider of viatical settlements and the viator and the insured have given prior written consent to the disclosure;
(b) Furnished in response to an investigation or examination by the commissioner or another governmental officer or agency;
(c) A term of or condition to the transfer of a policy by one provider of viatical settlements to another provider; or
(d) Necessary to permit a financing agent to finance the purchase of a policy by a provider of viatical settlements and the insured has given prior written consent to the disclosure.
Sec. 24. The commissioner may examine or investigate a licensee under this chapter as often as he considers appropriate. An examination will be conducted in the manner provided in NRS 679B.230 to 679B.300, inclusive. The commissioner may also examine or investigate any other person or business insofar as he considers necessary or material to the examination or investigation of the licensee. Instead of an examination or investigation under this chapter of a foreign or alien person licensed under this chapter, the commissioner may accept a report on examination or investigation of the licensee by the equivalent authority of the licensees state of domicile or port of entry.
κ2001 Statutes of Nevada, Page 2171 (Chapter 446, AB 618)κ
this chapter, the commissioner may accept a report on examination or investigation of the licensee by the equivalent authority of the licensees state of domicile or port of entry.
Sec. 25. 1. A person required to be licensed under this chapter shall retain for 5 years copies of all:
(a) Contracts, underwriting documents, forms of policy and applications, from the date of the proposal, offer or execution, whichever is latest;
(b) Checks, drafts and other evidence or documentation relating to the payment, transfer or release of money, from the date of the transaction; and
(c) Records and documents related to the requirements of this chapter.
2. This section does not relieve a person of the obligation to produce a document described in subsection 1 to the commissioner after the expiration of the relevant period if the person has retained the document.
3. Records required by this section to be retained must be legible and complete. They may be retained in any form or by any process that accurately reproduces or is a durable medium for the reproduction of the record.
Sec. 26. 1. With each application for a viatical settlement, a provider or broker of viatical settlements shall furnish to the viator at least the following disclosures no later than the time the application for the settlement is signed by all the parties, in a separate document signed by the viator and the provider or broker:
(a) The possible alternatives to viatical settlement, including any accelerated death benefits or loans offered under the viators policy.
(b) Some or all of the proceeds of the viatical settlement may be taxable under the federal income tax or a state franchise or income tax, and assistance should be sought from a professional tax adviser.
(c) Proceeds of the viatical settlement may be subject to the claims of creditors.
(d) Receipt of proceeds of a viatical settlement may adversely affect the viators eligibility for Medicaid or other governmental benefits, and advice should be sought from the appropriate governmental agencies.
(e) The viator has a right to terminate a viatical settlement within 15 days after his receipt of the proceeds, as provided in section 31 of this act, and if the insured dies during that period, the settlement is terminated and all proceeds must be repaid to the provider.
(f) Money will be sent to the viator within 3 business days after the provider has received the insurers or group administrators acknowledgment that ownership of or interest in the policy has been transferred and the beneficiary has been designated.
(g) Entering into a viatical settlement may cause other rights, including conversion and waiver of premium, that may exist under the policy to be forfeited by the viator, and assistance should be sought from a financial adviser.
(h) A brochure is provided which describes the process of viatical settlement, in the form prescribed by the National Association of Insurance Commissioners unless the commissioner prescribes a different form.
2. The document in which the disclosures required by paragraphs (a) to (g), inclusive, of subsection 1 are made must also contain the following:
All medical, financial and personal information solicited or obtained by a provider or broker of viatical settlements about an insured, including his identity and that of members of his family, a spouse or other relationship, may be disclosed as necessary to effect the viatical settlement between the viator and the provider.
κ2001 Statutes of Nevada, Page 2172 (Chapter 446, AB 618)κ
All medical, financial and personal information solicited or obtained by a provider or broker of viatical settlements about an insured, including his identity and that of members of his family, a spouse or other relationship, may be disclosed as necessary to effect the viatical settlement between the viator and the provider. If you are asked to provide this information, you will be asked to consent to the disclosure. Failure to consent may affect your ability to viaticate your policy. The information may be furnished to someone who buys the policy or provides money for the purchase.
Sec. 27. A provider of viatical settlements shall furnish to the viator, no later than the date the viatical settlement is signed by all parties, at least the following disclosures, conspicuously displayed in the viatical settlement or in a separate document signed by the viator and the provider or broker of viatical settlements:
1. The affiliation, if any, between the provider and the issuer of the policy to be viaticated.
2. The name, address and telephone number of the provider.
3. The amount and method of calculating the brokers commission, including anything of value paid or given to the broker for placing the policy.
4. If the policy to be viaticated was issued as a joint policy, contains family riders or covers a life other than that of the insured under it, any possible loss of coverage on the other lives under the policy, and that the viator should consult the producer of the insurance or the issuer of the policy for advice concerning the settlement.
5. The monetary amount of the current death benefit payable to the provider under the policy and, if known, the availability of any other guaranteed benefit, the monetary amount of any benefit for accidental death or dismemberment, and the providers interest in those benefits.
6. The name, business address and telephone number of the escrow agent, and the right of the viator or owner to inspect or receive copies of the relevant escrow or trust agreements or related documents.
Sec. 28. If a provider of viatical settlements transfers ownership or changes the beneficiary of a viaticated policy, he shall inform the insured of the transfer or change within 20 days after it occurs.
Sec. 29. 1. A provider of viatical settlements who enters into a settlement shall first obtain:
(a) If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a settlement;
(b) A witnessed document in which the viator represents that he has a full and complete understanding of the settlement and of the benefits of the policy, acknowledges that he has entered into the settlement freely and voluntarily and, if applicable to determine a payment to a person terminally or chronically ill, acknowledges that he is terminally or chronically ill and that the illness was diagnosed after the policy was issued; and
(c) A document in which the insured consents to the release of his medical records to a provider or broker of viatical settlements and the insurer that issued the policy covering him.
κ2001 Statutes of Nevada, Page 2173 (Chapter 446, AB 618)κ
2. Within 20 days after a viator executes documents necessary to transfer rights under a policy, or enters into an agreement in any form, express or implied, to viaticate the policy, the provider of viatical settlements shall give written notice to the issuer of the policy that the policy has or will become viaticated. The notice must be accompanied by a copy of the release of medical records and the application for the viatical settlement.
Sec. 30. All medical information solicited or obtained by a licensee under this chapter is subject to other laws of this state relating to the confidentiality of the information.
Sec. 31. A viatical settlement entered into in this state must reserve to the viator an unconditional right to terminate the settlement within 15 days after he receives the proceeds of the settlement. If the insured dies during that period, the settlement is terminated, but the proceeds must be repaid to the provider of the viatical settlement.
Sec. 32. 1. A provider of viatical settlements shall instruct the viator to send the executed documents required to effect the change in ownership or assignment or change of beneficiary of the affected policy to a designated independent escrow agent. Within 3 business days after the date the escrow agent receives the documents, or within 3 business days after the provider receives the documents if by mistake they are sent directly to him, the escrow agent shall deposit the proceeds of the settlement into an escrow or trust account maintained in a regulated financial institution whose deposits are insured by the Federal Deposit Insurance Corporation.
2. Upon deposit of the proceeds in that account, the escrow agent shall deliver to the provider the original documents executed by the viator. Upon the providers receipt from the insurer of an acknowledgment of the change in ownership or assignment or change of beneficiary of the affected policy, he shall instruct the escrow agent to pay the proceeds of the settlement to the viator.
3. Payment to the viator must be made within 3 business days after the date the provider received the acknowledgment from the insurer. Failure to make the payment within that time makes the viatical settlement voidable by the viator for lack of consideration until payment is tendered to and accepted by the viator.
Sec. 33. 1. Contact with an insured to determine the status of his health after a viatical settlement may be made only by a provider or broker of viatical settlements who is licensed in this state, or its authorized representative, and no oftener than once every 3 months if the insured has a life expectancy of 1 year or more, or once every month if the insured has a life expectancy of less than 1 year. The provider or broker shall explain the procedure for those contacts at the time the settlement is entered into.
2. The limitations of subsection 1 do not apply to contacts for purposes other than determining status of health.
3. A provider or broker is responsible for the acts of his authorized representative.
Sec. 34. 1. A viator may not enter into a viatical settlement within 2 years after the issuance of the policy to which the settlement relates unless one or more of the following conditions is or has been satisfied:
(a) The policy was issued upon the owners exercise of a right of conversion arising out of a group policy.
κ2001 Statutes of Nevada, Page 2174 (Chapter 446, AB 618)κ
(b) The owner of the policy is a charitable organization exempt from taxation under 26 U.S.C. § 501(c)(3).
(c) The owner of the policy is a business organization.
(d) The viator or owner submits to the provider of viatical settlements independent evidence that within the 2-year period:
(1) The owner or insured has been diagnosed to have an illness or condition that is life-threatening or requires a course of treatment for at least 2 years, long-term care or health care at home, or any combination of these;
(2) The spouse of the owner or insured has died;
(3) The owner or insured has divorced his spouse;
(4) The owner or insured has retired from full-time employment;
(5) The owner or insured has become physically or mentally disabled and a physician determines that the disability precludes him from maintaining full-time employment;
(6) The owner of the policy was the employer of the insured and that relationship has terminated;
(7) A final judgment or order has been entered or issued by a court of competent jurisdiction, on the application of a creditor or owner of the insured, adjudging the owner or insured bankrupt or insolvent, or approving a petition for reorganization of the owner or insured or appointing a receiver, trustee or liquidator for all or a substantial part of the assets of the owner or insured;
(8) The owner of the policy experiences a significant decrease in income which is unexpected by him and impairs his reasonable ability to pay the premium on the policy; or
(9) The owner or insured disposes of his ownership in a closely held corporation.
2. The independent evidence must be submitted to the insurer when the provider of viatical settlements submits a request to the insurer to effect transfer of the policy to him. The insurer shall respond timely to the request. This section does not prohibit an insurer from exercising its right to contest a policy on the ground of fraud.
3. If a provider of viatical settlements submits to an insurer a copy of the owners or insureds certification that one of the events described in paragraph (d) of subsection 1 has occurred, the certification conclusively establishes that the viatical settlement is valid, and the insurer shall timely respond to the providers request to effect a transfer of the policy.
Sec. 35. Sections 35 to 43, inclusive, of this act apply to advertising of viatical settlements or related services intended for dissemination in this state, including advertising on the Internet which is viewed by persons in this state. To the extent that federal regulation establishes requirements for disclosure, those sections must be so interpreted as to eliminate or minimize conflict with the federal requirements.
Sec. 36. Each licensee under this chapter shall establish and continuously maintain a system of control over the content, form and method of dissemination of all advertisements of its contracts and services. Each advertisement is the responsibility of the licensee as well as the person who creates or presents it. A system of control must include notification to persons authorized by the licensee who disseminate advertisements, at least annually, of the requirements and procedures for approval before use of any advertisements not furnished by the licensee.
κ2001 Statutes of Nevada, Page 2175 (Chapter 446, AB 618)κ
Sec. 37. An advertisement must be truthful and not misleading in fact or by implication. The form and content of an advertisement for viatical settlements must be sufficiently complete and clear to avoid deception. An advertisement may not have a capacity or tendency to mislead or deceive, as determined by the commissioner from the overall impression it may reasonably be expected to create upon a person of average education or intelligence in the segment of the public to which it is directed.
Sec. 38. 1. The information required to be disclosed under sections 35 to 43, inclusive, of this act may not be minimized, obscured, presented ambiguously or so intermingled with other text of an advertisement as to be confusing or misleading.
2. An advertisement may not omit material information or use language or illustrations if the omission or use has a capacity or tendency to, or does, mislead viators as to the nature or extent of any benefit, loss covered, premium payable or effect on federal or state taxes. Making a viatical settlement available for inspection before it is consummated, or offering to refund payment if the viator is not satisfied within the period prescribed in section 31 of this act, does not remedy misleading statements.
3. An advertisement may not use the name or title of an insurer or policy unless the advertisement has been approved by the insurer.
4. An advertisement may not state or imply that interest charged on an accelerated death benefit or loan on a policy is unfair or in any way improper.
5. The words free, no additional cost or words of similar import may not be used with respect to any benefit or service unless true.
Sec. 39. 1. A testimonial, appraisal or analysis used in an advertisement must be genuine, represent the present opinion of the author, apply to the viatical settlement advertised, if any, and be reproduced with sufficient completeness to avoid misleading viators. In using a testimonial, appraisal or analysis, a licensee under this chapter makes the statements contained his own, and the statements must satisfy the requirements of sections 35 to 43, inclusive, of this act.
2. If the person making a testimonial, appraisal, analysis or endorsement has a financial interest in the provider of viatical settlements or a related organization, or receives a benefit other than required wages, that fact must be prominently disclosed in the advertisement.
3. An advertisement may not state or imply that a viatical settlement, benefit or service has been approved or endorsed by a group, society or other organization unless that is the fact and any relationship between the organization and the provider of viatical settlements is disclosed. If the organization is owned, controlled or managed by the provider, or receives any payment or other consideration from the provider for making the endorsement or testimonial, that fact must be disclosed in the advertisement.
4. An advertisement may not contain statistical information unless it accurately reflects recent and relevant facts. The source of all statistics used in an advertisement must be identified.
Sec. 40. An advertisement may not disparage insurers, providers of insurance, other providers or brokers of viatical settlements, policies, services or methods of marketing.
κ2001 Statutes of Nevada, Page 2176 (Chapter 446, AB 618)κ
Sec. 41. 1. The name of the provider of viatical settlements must be clearly identified in an advertisement about him or his viatical settlements. If a viatical settlement is advertised, it must be identified by number or other appropriate description. If an application is part of an advertisement, the name of the provider must be shown on the application.
2. An advertisement may not use a trade name, designation of a group, name of a parent or particular division of a provider of viatical settlements, service mark, slogan or other device or reference without disclosing the identity of the provider of viatical settlements licensed under this chapter if the advertisement would have the capacity or tendency to mislead as to his true identity or create the impression that an organization other than the licensee would have a responsibility for the financial obligation under a viatical settlement. The name of the licensee must be stated in all advertisements.
Sec. 42. 1. An advertisement may not use a combination of words, symbols or physical materials that by their content, phraseology, shape, color or other characteristic are so similar to a combination of words, symbols or physical materials used by a governmental program or agency, or otherwise appear to be of such a nature, that they tend to mislead viators into believing that the solicitation is connected with a governmental program or agency. An advertisement may not create the impression that a provider of viatical settlements, his financial condition or business practices, the payment of his claims or the merit, desirability or advisability of his viatical settlements is recommended or endorsed by a governmental authority.
2. An advertisement may state that a provider of viatical settlements is licensed in the state in which the advertisement appears, if it does not imply that competing providers are not so licensed. The advertisement may suggest consulting the licensees web site or communicating with the commissioner to ascertain whether the state requires licensing and, if so, whether a particular provider or broker of viatical settlements is licensed.
Sec. 43. 1. If an advertiser emphasizes the speed with which viatication will occur, the advertisement must disclose the average time from completed application to date of offer and from acceptance of offer to receipt of funds by the viator.
2. If an advertiser emphasizes the monetary amounts available to viators, the advertisement must disclose the average purchase price as a fraction of face value obtained by viators who contracted with the advertiser during the preceding 6 months.
Sec. 44. It is a category D felony, and the offender shall be punished as provided in NRS 193.130, for any person, knowingly or with intent to defraud, to do any of the following acts in order to deprive another of property or for his own pecuniary gain:
1. Present, cause to be presented or prepare with knowledge or belief that it will be presented, false information to or by a provider or broker of viatical settlements, a financing agent, an insurer, a provider of insurance or any other person, or to conceal information, as part of, in support of or concerning a fact material to:
(a) An application for the issuance of a policy or viatical settlement;
(b) The underwriting of a policy or viatical settlement;
(c) A claim for payment or other benefit under a policy or viatical settlement;
κ2001 Statutes of Nevada, Page 2177 (Chapter 446, AB 618)κ
(d) A premium paid on a policy;
(e) A payment or change of beneficiary or ownership pursuant to a policy or viatical settlement;
(f) The reinstatement or conversion of a policy;
(g) The solicitation, offer or effectuation of a policy or viatical settlement; or
(h) The issuance of written evidence of a policy or viatical settlement.
2. In furtherance of a fraud or to prevent detection of a fraud:
(a) Remove, conceal, alter, destroy or sequester from the commissioner assets or records of a licensee under this chapter or other person engaged in the business of viatical settlements;
(b) Misrepresent or conceal the financial condition of a licensee, a financing agent, an insurer or other person;
(c) Transact the business of viatical settlements in violation of this chapter; or
(d) File with the commissioner or analogous officer of another jurisdiction a document containing false information or otherwise conceal information about a material fact from the commissioner or other officer.
3. Present, cause to be presented or prepare with knowledge or belief that it will be presented to or by a provider or broker of viatical settlements, a financing agent, an insurer, a provider of insurance or any other person, in connection with a viatical settlement or transaction of insurance, a policy fraudulently by the insured or owner or an agent of either.
4. Embezzle, steal, misappropriate or convert money, premiums, credits or other property of a provider of viatical settlements, a viator, an insurer, an insured, an owner of a policy or other person engaged in the business of viatical settlements or insurance.
5. Attempt to commit, assist, aid, abet or conspire to commit an act or omission described in subsections 1 to 4, inclusive.
Sec. 45. It is unlawful knowingly or intentionally:
1. For any person to interfere with the enforcement of the provisions of this chapter or an investigation of a possible violation of those provisions.
2. For a person engaged in the business of viatical settlements to permit any person convicted of a felony involving dishonesty or breach of trust to participate in that business.
Sec. 46. An application or contract for a viatical settlement, however transmitted, must contain a settlement substantially as follows: A person who knowingly presents false information in an application for a viatical settlement is guilty of insurance fraud and subject to fine and imprisonment. The lack of such a statement is not a defense in a prosecution for violation of section 44 of this act.
Sec. 47. 1. A person engaged in the business of viatical settlements who knows or reasonably believes that a violation of section 44 of this act is being, has been or will be committed shall promptly report the facts and circumstances pertaining to the violation to the commissioner.
2. Any other person who knows or reasonably believes that a violation of section 43 of this act is being, has been or will be committed may furnish to the commissioner the information required by the commissioner.
κ2001 Statutes of Nevada, Page 2178 (Chapter 446, AB 618)κ
Sec. 48. 1. Except as otherwise provided in subsection 2, a person furnishing information of the kind described in section 47 of this act is immune from liability and civil action if the information is furnished to or received from:
(a) The commissioner or his employees, agents or representatives;
(b) Another federal, state or local law enforcement or regulatory officer or his employees, agents or representatives;
(c) Another person involved in the prevention or detection of violations of section 44 of this act or similar offenses or his employees, agents or representatives;
(d) The National Association of Insurance Commissioners or other regulatory body overseeing life insurance or viatical settlements, or its employees, agents or representatives; or
(e) The insurer that issued the policy concerned in the information.
2. The immunity provided in subsection 1 does not extend to a statement made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a violation of section 44 of this act, the plaintiff must plead specifically that the defendant acted with actual malice.
3. This section does not supplant or modify any other privilege or immunity at common law or under another statute enjoyed by a person described in subsection 1.
Sec. 49. 1. A document or information furnished pursuant to section 48 of this act or obtained by the commissioner in an investigation of an actual or suspected violation of section 44 of this act is confidential and privileged, is not a public record and is not subject to discovery or subpoena in a civil action or criminal prosecution.
2. Subsection 1 does not prohibit the commissioner from disclosing documents or evidence so furnished or obtained:
(a) In an administrative or judicial proceeding to enforce a statute administered by him;
(b) To another federal, state or local law enforcement or regulatory officer, another person involved in the prevention or detection of violations of section 44 of this act or similar offenses, or the National Association of Insurance Commissioners; or
(c) To a person engaged in the business of viatical settlements who is aggrieved by the violation.
3. Disclosure of a document or evidence under subsection 2 does not abrogate or modify the privilege covering it under subsection 1.
Sec. 50. 1. Each licensee under this chapter shall establish and maintain protective measures against fraud which are reasonably calculated to prevent, detect and assist in the prosecution of violations of section 44 of this act. The commissioner may order, or a licensee may request and the commissioner may approve, modifications of the measures otherwise required under this section, more or less restrictive than those measures, as necessary to protect against fraud. Required measures are employment of or contracting with investigators and submission of a plan to the commissioner which includes:
(a) A description of the procedures for detecting and investigating possible violations of section 44 of this act and for resolving inconsistencies between medical records and applications for insurance;
κ2001 Statutes of Nevada, Page 2179 (Chapter 446, AB 618)κ
(b) A description of the procedures for reporting possible violations to the commissioner;
(c) A description of the plan for educating and training underwriters and other personnel against fraud; and
(d) A description or chart of the organizational arrangement of the personnel responsible for detecting and investigating possible violations of section 44 of this act and for resolving inconsistencies between medical records and applications for insurance.
2. A plan submitted to the commissioner pursuant to subsection 1 is privileged and confidential, not a public record and not subject to discovery or subpoena in a civil action or criminal prosecution.
Sec. 51. 1. In addition to the penalties and other means of enforcement provided under this chapter:
(a) If a person violates a provision of this chapter or of a regulation adopted under this chapter, the commissioner may seek an injunction and apply for temporary and permanent orders he determines to be necessary to restrain the violator.
(b) A person who violates a provision of this chapter is subject to an administrative fine of not more than $1,000 for each violation.
(c) In addition to a criminal penalty imposed, the court shall order restitution to the person aggrieved by the violation.
2. A person aggrieved by a violation of this chapter may bring a civil action against the violator to recover the damages suffered.
Sec. 52. The commissioner may adopt regulations to:
1. Establish standards for evaluating the reasonableness of payments under viatical settlements to persons chronically or terminally ill, including the regulation of the rates of discount used to determine the amount paid in exchange for an assignment, transfer, sale or devise of a benefit under a policy.
2. Require a bond or otherwise ensure financial accountability of providers and brokers of viatical settlements.
3. Govern the relationship of insurers with providers and brokers of viatical settlements during the viatication of a policy.
Sec. 53. Chapter 679A of NRS is hereby amended by adding thereto the provisions set forth as sections 54 and 55 of this act.
Sec. 54. Producer of insurance means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance.
Sec. 55. Provider of insurance includes an insurer, producer of insurance, managing general agent, third party administrator, organization composed of or using preferred providers of health care, health maintenance organization, commercial bank, trust company, savings and loan association, credit union, thrift company, financial holding company, affiliate or subsidiary of an insurer or financial holding company, broker-dealer in securities, mortgage lender, and any other person engaged in the business of insurance.
Sec. 56. NRS 679A.020 is hereby amended to read as follows:
679A.020 As used in this code, unless the context otherwise requires, the words and terms defined in NRS 679A.030 to 679A.130, inclusive, and sections 54 and 55 of this act have the meanings ascribed to them in those sections.
κ2001 Statutes of Nevada, Page 2180 (Chapter 446, AB 618)κ
Sec. 57. Chapter 679B of NRS is hereby amended by adding thereto the provisions set forth as sections 58 and 59 of this act.
Sec. 58. 1. The commissioner shall adopt regulations governing:
(a) The use of electronic signatures, and the acceptance and transmission of electronic records, in transactions relating to insurance; and
(b) The electronic filing of forms and payment of fees, and the storage and reproduction of records, filed with the division.
2. As used in this section:
(a) Electronic means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.
(b) Electronic record means a record created, generated, sent, communicated, received or stored by electronic means.
(c) Electronic signature means an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
(d) Record means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(e) Transaction means an action or set of actions occurring between two or more persons relating to the transaction of business, commercial or governmental affairs.
Sec. 59. The commissioner may adopt regulations, not inconsistent with any provision of NRS, to enforce the provisions of any federal law enacted after January 1, 2001, concerning a bill of rights for patients.
Sec. 60. NRS 679B.090 is hereby amended to read as follows:
679B.090 1. The commissioner may employ such other technical, actuarial, rating, clerical and other assistants and examiners as he may reasonably require for execution of his duties, each of whom must be in the classified service of the state.
2. The commissioner may contract for and procure services of examiners and other or additional specialized technical or professional assistance, as independent contractors or for a fee, as he may reasonably require. None of the persons providing those services or assistance on [a] contract or for a fee [basis] may be in the classified service of the state.
3. The commissioner may contract with a person outside the division for administering examinations, processing applications for licenses, and collecting fees.
4. The commissioner may adopt regulations to carry out the provisions of subsections 2 and 3.
Sec. 61. NRS 679B.150 is hereby amended to read as follows:
679B.150 1. The commissioner may:
(a) Take measures to enhance the public understanding of insurance coverages purchased by consumers and encourage price competition among insurers and a public understanding of the standards promulgated under paragraph (b).
(b) Develop, promulgate and revise as he deems appropriate, standards in each of the several areas of insurance appropriate to be applied to policies sold in the State of Nevada. The standards [shall] must seek to ensure that policies [shall not be] are not unjust, unfair, inequitable, unfairly discriminatory, misleading, deceptive, obscure or encourage misrepresentation or misunderstanding of the contract.
κ2001 Statutes of Nevada, Page 2181 (Chapter 446, AB 618)κ
(c) Develop criteria to determine the suitability of insurance contracts and the practices used in the sale of insurance.
2. [Nothing in this section shall] This section does not prohibit an insurer from offering policies encompassing standards more favorable to the insured than those promulgated under this section.
Sec. 62. NRS 679B.152 is hereby amended to read as follows:
679B.152 1. Every insurer or organization for dental care which pays claims on the basis of fees for medical or dental care which are usual and customary shall submit to the commissioner a complete description of the method it uses to determine those fees. This information must be kept confidential by the commissioner. The fees determined by the insurer or organization to be the usual and customary fees for that care are subject to the approval of the commissioner as being the usual and customary fees in that locality. The provisions of this subsection apply to medical or dental care provided to a claimant under any contract of insurance.
2. Any contract for group, blanket or individual health insurance and any contract issued by a nonprofit hospital, medical or dental service corporation or organization for dental care, which provides a plan for dental care to its insureds or members which limits their choice of a dentist, under the plan to those in a preselected group, must offer its insureds or members the option of selecting a plan of benefits which does not restrict the choice of a dentist. The selection of that option does not entitle the insured or member to any increase in contributions by his employer or other organization toward the premium or cost of the optional plan over that contributed under the restricted plan.
Sec. 63. NRS 679B.190 is hereby amended to read as follows:
679B.190 1. The commissioner shall carefully preserve in the division and in permanent form all papers and records relating to the business and transactions of the division and shall hand them over to his successor in office.
2. Except as otherwise provided in subsections 3 [, 5 and 6,] and 5 to 9, inclusive, other provisions of this code and NRS 616B.015, the papers and records must be open to public inspection.
3. Any records or information in the possession of the division related to an investigation conducted by the commissioner is confidential unless:
(a) The commissioner releases, in the manner that he deems appropriate, all or any part of the records or information for public inspection after determining that the release of the records or information:
(1) Will not harm his investigation or the person who is being investigated; or
(2) Serves the interests of a policyholder, the shareholders of the insurer or the public; or
(b) A court orders the release of the records or information after determining that the production of the records or information will not damage any investigation being conducted by the commissioner.
4. The commissioner may destroy unneeded or obsolete records and filings in the division in accordance with provisions and procedures applicable in general to administrative agencies of this state.
5. The commissioner may classify as confidential [certain] :
(a) Specified records and information obtained from a governmental agency [or] ;
κ2001 Statutes of Nevada, Page 2182 (Chapter 446, AB 618)κ
(b) Documents obtained or received from other sources upon the express condition that they remain confidential.
6. All information and documents in the possession of the division or any of its employees which are related to cases or matters under investigation by the commissioner or his staff are confidential for the period of the investigation and may not be made public unless the commissioner finds the existence of an imminent threat of harm to the safety or welfare of the policyholder, shareholders or the public and determines that the interests of the policyholder, shareholders or the public will be served by publication thereof, in which event he may make a record public or publish all or any part of the record in any manner he deems appropriate.
7. The commissioner may classify as confidential the records of a consumer or information relating to a consumer to protect the health, welfare or safety of the consumer.
8. In performing his duties, the commissioner may:
(a) Share documents, materials or other information, including any documents, materials or information classified as confidential, with other state, federal and international regulatory or law enforcement agencies or with the National Association of Insurance Commissioners and its affiliates and subsidiaries if the recipient agrees to maintain the confidentiality and privileged status of the documents, materials or other information.
(b) May receive documents, materials or other information, including any documents, materials or information otherwise confidential and privileged, from other state, federal and international regulatory or law enforcement agencies or from the National Association of Insurance Commissioners and its affiliates and subsidiaries, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the law of the jurisdiction from which it was received.
(c) Enter into agreements, consistent with this subsection, governing the sharing and use of information.
9. No waiver of confidentiality or privilege with respect to any document, material or information occurs as a result of disclosure to the commissioner under this section or of sharing as authorized under this chapter.
Sec. 64. NRS 679B.220 is hereby amended to read as follows:
679B.220 1. The commissioner shall communicate on request of the regulatory officer for insurance [supervisory official of] in any state, province or country any information which it is his duty by law to ascertain respecting authorized insurers.
2. The commissioner may:
(a) Be a member of the National Association of Insurance Commissioners or any successor organization;
(b) Exchange with the association or any successor organization any information, not otherwise confidential, relating to applicants and licensees under this Title;
(c) Communicate with the association or any successor organization concerning the business of insurance generally; [and]
(d) Enter into compacts with the regulatory officers in other states to further the uniform treatment of insurers throughout the United States; and
κ2001 Statutes of Nevada, Page 2183 (Chapter 446, AB 618)κ
(e) Participate in and support other cooperative activities of public officers having supervision of the business of insurance.
Sec. 65. NRS 679B.510 is hereby amended to read as follows:
679B.510 As used in NRS 679B.510 to 679B.560, inclusive, and section 59 of this act, unless the context otherwise requires, the words and terms defined in NRS 679B.520, 679B.530 and 679B.540 have the meanings ascribed to them in those sections.
Sec. 66. NRS 680A.320 is hereby amended to read as follows:
680A.320 1. For the purposes of this section:
(a) An affiliated person is a person controlled by any combination of the insurer, the parent corporation, a subsidiary or the principal stockholders or officers or directors of any of the foregoing.
(b) Depository institution has the meaning ascribed to it in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(1).
(c) Financial holding company means a bank holding company that satisfies the requirements of section 4(l)(1) of the Bank Holding Company Act of 1956, 12 U.S.C. § 1841(l)(1).
(d) Health facility has the meaning ascribed to it in NRS 439A.015.
[(c)] (e) A subsidiary is a person of which either the insurer and the parent corporation or the insurer or the parent corporation holds practical control.
2. No insurer may engage directly or indirectly in any transaction or agreement with its parent corporation, a financial holding company, a depository institution, or [with] any subsidiary or affiliated person which will result or tend to result in:
(a) Substitution contrary to the interest of the insurer and through any method of any asset of the insurer with an asset or assets of inferior quality or lower fair market value;
(b) Deception as to the true operating results of the insurer;
(c) Deception as to the true financial condition of the insurer;
(d) Allocation to the insurer of a proportion of the expense of combined facilities or operations which is unfair and unfavorable to the insurer;
(e) Unfair or excessive charges against the insurer for services, facilities, supplies or reinsurance;
(f) Unfair and inadequate charges by the insurer for reinsurance, services, facilities or supplies furnished by the insurer to others;
(g) Payment by the insurer for services, facilities, supplies or reinsurance not reasonably needed by the insurer;
(h) Depletion of the insurers surplus, through payment of dividends or other distribution or withdrawal, below the amount thereof reasonably required for conduct of the insurers business and maintenance of growth with safety to policyholders; or
(i) Payment by the insurer for services or products for which the health facility has charged less than fair market value, unless the reduced charge is reflected in the form of reduced premiums. In determining what constitutes fair market value, consideration must be given to reasonable agreements for the preferential provision of health care, in accordance with regulations adopted by the commissioner. An insurer which pays less than fair market value for services or products in a transaction which is subject to the provisions of this paragraph shall annually file a certification with the commissioner that the reduced payment has been reflected in the form of reduced premiums, together with documentation supporting the certification.
κ2001 Statutes of Nevada, Page 2184 (Chapter 446, AB 618)κ
3. In all transactions between the insurer and its parent corporation, or involving the insurer and any subsidiary or affiliated person, full recognition must be given to the paramount duty and obligation of the insurer to protect the interests of policyholders, both existing and future.
4. If a health facility is a parent, subsidiary or affiliate of an insurer or of a parent or facility of an insurer, and the insurer purchases medical or any other services or products from the health facility, the health facility may not:
(a) Attempt artificially to reduce or increase its margin of profit by altering the charges to the insurer.
(b) Alter its true operating results or financial condition through charges to the insurer for services or products.
This subsection does not prohibit activities authorized pursuant to paragraph (i) of subsection 2.
5. If a health facility is found, after notice and a hearing, to have violated the provisions of subsection 4, the commissioner may impose an administrative fine of not more than $5,000 for each violation.
Sec. 67. NRS 680B.010 is hereby amended to read as follows:
680B.010 The commissioner shall collect in advance and receipt for, and persons so served must pay to the commissioner, fees and miscellaneous charges as follows:
1. Insurers certificate of authority:
(a) Filing initial application.............................................................................................................. $2,450
(b) Issuance of certificate:
(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive..... 283
(2) For two or more kinds of insurance as so defined................................................................. 578
(3) For a reinsurer............................................................................................................................ 2,450
(c) Each annual continuation of a certificate................................................................................ 2,450
(d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwise required.
(e) Registration of additional title pursuant to NRS 680A.240........................................................ 50
(f) Annual renewal of the registration of additional title pursuant to NRS 680A.240................. 25
2. Charter documents, other than those filed with an application for a certificate of authority. Filing amendments to articles of incorporation, charter, bylaws, power of attorney and other constituent documents of the insurer, each document............................................................................................. $10
3. Annual statement or report. For filing annual statement or report ......................................... $25
4. Service of process:
(a) Filing of power of attorney................................................................................................................ $5
(b) Acceptance of service of process..................................................................................................... 30
5. [Agents licenses,] Licenses, appointments and renewals [:] for producers of insurance:
(a) [Resident agents and nonresident agents qualifying under subsection 3 of NRS 683A.340:
(1)] Application and license................................................................................................ [$78] $125
[(2) Appointment by]
(b) Appointment fee for each insurer.............................................................................................. [5] 15
[(3)] (c) Triennial renewal of each license............................................................................. [78] 125
[(4)] (d) Temporary license................................................................................................................. 10
[(b) Other nonresident agents:
κ2001 Statutes of Nevada, Page 2185 (Chapter 446, AB 618)κ
(1) Application and license .............................................................................................................. 138
(2) Appointment by each insurer....................................................................................................... 25
(3) Triennial renewal of each license.............................................................................................. 138
6. Brokers licenses and renewals:
(a) Resident brokers and nonresident brokers qualifying under subsection 3 of NRS 683A.340:
(1) Application and license .............................................................................................................. $78
(2) Triennial renewal of each license................................................................................................ 78
(b) Other nonresident brokers:
(1) Application and license .............................................................................................................. 258
(2) Triennial renewal of each license.............................................................................................. 258
(c) Resident surplus]
(e) Modification of an existing license................................................................................................ 50
6. Surplus lines brokers:
[(1)] (a) Application and license .......................................................................................... [78] $125
[(2)] (b) Triennial renewal of each license............................................................................. [78] 125
[(d) Nonresident surplus lines brokers:
(1) Application and license............................................................................................................... 258
(2) Triennial renewal of each license.............................................................................................. 258
7. Solicitors licenses, appointments and renewals:
(a) Application and license .................................................................................................................. $78
(b) Triennial renewal of each license..................................................................................................... 78
(c) Initial appointment............................................................................................................................... 5
8.] 7. Managing general agents licenses, appointments and renewals:
(a) [Resident managing general agents:
(1)] Application and license ............................................................................................... [$78] $125
[(2) Initial appointment,]
(b) Appointment fee for each insurer.............................................................................................. [5] 15
[(3)] Triennial renewal of each license................................................................................... [78] 125
[(b) Nonresident managing general agents:
(1) Application and license............................................................................................................... 138
(2) Initial appointment, each insurer................................................................................................ 25
(3) Triennial renewal of each license.............................................................................................. 138
9.] 8. Adjusters licenses and renewals:
(a) Independent and public adjusters:
(1) Application and license ................................................................................................. [$78] $125
(2) Triennial renewal of each license...................................................................................... [78] 125
(b) Associate adjusters:
(1) Application and license ..................................................................................................... [78] 125
(2) [Initial appointment......................................................................................................................... 5
(3)] Triennial renewal of each license.................................................................................... [78] 125
[10.] 9. Licenses and renewals for appraisers of physical damage to motor vehicles:
(a) Application and license ..................................................................................................... [$78] $125
(b) Triennial renewal of each license.......................................................................................... [78] 125
[11.] 10. Additional title and property insurers pursuant to NRS 680A.240:
(a) Original registration.......................................................................................................................... $50
(b) Annual renewal................................................................................................................................... 25
[12.] 11. Insurance vending machines:
(a) Application and license, for each machine..................................................................... [$78] $125
κ2001 Statutes of Nevada, Page 2186 (Chapter 446, AB 618)κ
(b) Triennial renewal of each license.......................................................................................... [78] 125
[13.] 12. Permit for solicitation for securities:
(a) Application for permit................................................................................................................... $100
(b) Extension of permit............................................................................................................................ 50
[14.] 13. Securities salesmen for domestic insurers:
(a) Application and license .................................................................................................................. $25
(b) Annual renewal of license................................................................................................................. 15
[15.] 14. Rating organizations:
(a) Application and license ................................................................................................................ $500
(b) Annual renewal................................................................................................................................. 500
[16.] 15. Certificates and renewals for administrators licensed pursuant to chapter 683A of NRS:
(a) [Resident administrators:
(1)] Application and certificate of registration ............................................................... [$78] $125
[(2)] (b) Triennial renewal......................................................................................................... [78] 125
[(b) Nonresident administrators:
(1) Application and certificate of registration .............................................................................. 138
(2) Triennial renewal.......................................................................................................................... 138
17.] 16. For copies of the insurance laws of Nevada, a fee which is not less than the cost of producing the copies.
[18.] 17. Certified copies of certificates of authority and licenses issued pursuant to the insurance code $10
[19.] 18. For copies and amendments of documents on file in the division, a reasonable charge fixed by the commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.
[20.] 19. Letter of clearance for [an agent or broker] a producer of insurance or other licensee, if requested by someone other than the licensee..................................................................................... $10
[21.] 20. Certificate of status as a [licensed agent or broker] producer of insurance or other licensee, if requested by someone other than the licensee..................................................................................... $10
[22.] 21. Licenses, appointments and renewals for bail agents:
(a) Application and license ..................................................................................................... [$78] $125
(b) [Initial appointment by] Appointment for each surety insurer............................................ [5] 15
(c) Triennial renewal of each license........................................................................................... [78] 125
[23.] 22. Licenses and renewals for bail enforcement agents:
(a) Application and license ..................................................................................................... [$78] $125
(b) Triennial renewal of each license.......................................................................................... [78] 125
[24.] 23. Licenses, appointments and renewals for general [bail agents:] agents for bail:
(a) Application and license ..................................................................................................... [$78] $125
(b) Initial appointment by each insurer.......................................................................................... [5] 15
(c) Triennial renewal of each license........................................................................................... [78] 125
[25.] 24. Licenses and renewals for bail solicitors:
(a) Application and license ..................................................................................................... [$78] $125
(b) Triennial renewal of each license.......................................................................................... [78] 125
[26.] 25. Licenses and renewals for title agents and escrow officers:
(a) [Resident title agents and escrow officers:
(1)] Application and license ............................................................................................... [$78] $125
[(2)] (b) Triennial renewal of each license............................................................................. [78] 125
κ2001 Statutes of Nevada, Page 2187 (Chapter 446, AB 618)κ
[(b) Nonresident title agents and escrow officers:
(1) Application and license .............................................................................................................. 138
(2) Triennial renewal of each license............................................................................................. 138]
(c) Appointment fee for each title insurer........................................................................................... 15
(d) Change in name or location of business or in association.......................................................... 10
[27.] 26. Certificate of authority and renewal for a seller of prepaid funeral contracts [$78] $125
[28.] 27. Licenses and renewals for agents for prepaid funeral contracts:
(a) [Resident agents:
(1)] Application and license ............................................................................................... [$78] $125
[(2)] (b) Triennial renewal of each license............................................................................. [78] 125
[(b) Nonresident agents:
(1) Application and license............................................................................................................... 138
(2) Triennial renewal of each license.............................................................................................. 138
29.] 28. Licenses, appointments and renewals for agents for fraternal benefit societies:
(a) [Resident agents:
(1)] Application and license ............................................................................................... [$78] $125
[(2) Appointment.................................................................................................................................... 5
(3)] (b) Appointment for each insurer.............................................................................................. 15
(c) Triennial renewal of each license........................................................................................... [78] 125
[(b) Nonresident agents:
(1) Application and license............................................................................................................... 138
(2) Triennial renewal of each license.............................................................................................. 138
30.] 29. Reinsurance intermediary broker or manager:
(a) [Resident agents:
(1)] Application and license ............................................................................................... [$78] $125
[(2)] (b) Triennial renewal of each license ............................................................................ [78] 125
[(b) Nonresident agents:
(1) Application and license .............................................................................................................. 138
(2) Triennial renewal of each license ............................................................................................. 138
31.] 30. Agents for and sellers of prepaid burial contracts:
(a) [Resident agents and sellers:
(1)] Application and certificate or license......................................................................... [$78] $125
[(2)] (b) Triennial renewal......................................................................................................... [78] 125
[(b) Nonresident agents and sellers:
(1) Application and certificate or license....................................................................................... 138
(2) Triennial renewal.......................................................................................................................... 138
32.] 31. Risk retention groups:
(a) Initial registration and review of an application................................................................... $2,450
(b) Each annual continuation of a certificate of registration...................................................... 2,450
[33.] 32. Required filing of forms:
(a) For rates and policies....................................................................................................................... $25
(b) For riders and endorsements............................................................................................................. 10
33. Viatical settlements:
(a) Provider of viatical settlements:
(1) Application and license....................................................................................................... $1,000
(2) Annual renewal........................................................................................................................ 1,000
(b) Broker of viatical settlements:
(1) Application and license............................................................................................................. 500
(2) Annual renewal........................................................................................................................... 500
κ2001 Statutes of Nevada, Page 2188 (Chapter 446, AB 618)κ
34. Insurance consultants:
(a) Application and license............................................................................................................... $125
(b) Triennial renewal............................................................................................................................ 125
35. Licensees association with or appointment or sponsorship by an organization:
(a) Initial appointment, association or sponsorship, for each organization............................. $50
(b) Renewal of each association or sponsorship............................................................................... 50
(c) Annual renewal of appointment...................................................................................................... 15
Sec. 68. NRS 682A.100 is hereby amended to read as follows:
682A.100 1. An insurer may invest in preferred or guaranteed stocks or shares of any solvent institution existing under the laws of the United States of America, Canada or Mexico, or of any state or province thereof, if all of the prior obligations and prior preferred stocks, if any, of [such] the institution at the date of acquisition of the investment by the insurer are eligible as investments under this chapter and if the net earnings of [such] the institution available for its fixed charges during either of the last 2 years have been, and during each of the last 5 years have averaged, not less than 1 1/2 times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements. For the purposes of this section [such computation shall refer] the computation refers to the fiscal years immediately preceding the date of acquisition of the investment by the insurer, and the term preferred dividend requirement [shall be deemed to mean] means cumulative or noncumulative dividends, whether paid or not.
2. No insurer [shall] may invest in any such preferred or guaranteed stocks in an amount in excess of [10] 35 percent of [any issue or such] the particular issue of guaranteed or preferred [stocks] stock or, subject to subsection 1 of NRS 682A.050 [(diversification),] more than an amount equal to 10 percent of the insurers admitted assets in any one issue.
Sec. 69. NRS 682A.110 is hereby amended to read as follows:
682A.110 1. An insurer may invest up to [25] 35 percent of its assets in nonassessable [(except as to bank or trust company stocks, and except for taxes)] common stocks, other than insurance stocks, of any solvent corporation organized and existing under the laws of the United States of America, Canada or Mexico, or of any state or province thereof, except that bank or trust company stocks may be assessable and any stocks may be assessable for taxes, if [such] the corporation has had net earnings available for dividends on [such] the stock in each of the 5 fiscal years next preceding acquisition by the insurer. If the issuing corporation has not been in legal existence for [the whole of such] all of the 5 fiscal years but was formed as a consolidation or merger of two or more businesses of which at least one was in operation on a date 5 years [prior to] before the investment, the test of eligibility of its common stock under this section [shall] must be based upon consolidated pro forma statements of the predecessor or constituent institutions.
2. Any amount invested in a fund or trust under NRS 682A.140 must not be included in computing the amounts prescribed in subsection 1.
κ2001 Statutes of Nevada, Page 2189 (Chapter 446, AB 618)κ
Sec. 70. NRS 682A.130 is hereby amended to read as follows:
682A.130 1. An insurer may invest in the stock of [its] a subsidiary insurance corporation formed or acquired by it, or in the stock of [its] a subsidiary business corporation [or corporations] formed and engaged solely in any one or more of the following businesses:
(a) [In any] A business necessary and incidental to the convenient operation of the insurers insurance business or to the administration of any of its lawful affairs;
(b) Providing any actuarial, computer, data processing, accounting, claims, appraisal, collection, sales, loss prevention or safety engineering and similar services;
(c) Real property management and development;
(d) Premium financing;
(e) Financing of agents of the insurer;
(f) Acting as investment adviser and principal underwriter or investment adviser or principal underwriter of a management company or management companies (mutual funds), registered as such under the Investment Company Act of 1940;
(g) Financial and investment counseling services;
(h) Administration of self-insurance plans;
(i) Administration of self-insured pension and similar plans, or the self-insured portions of such plans;
(j) Securities broker-dealer;
(k) Escrow services; [or]
(l) Trust services with respect to funds payable or paid by it under its insurance contracts [.] ;
(m) Bank, savings and loan association or thrift company; or
(n) Insurance agency.
2. For the purposes of this section a subsidiary is a corporation of which the insurer owns sufficient stock to give it effective control.
3. All of the insurers investments under this section shall be deemed to be common stocks for the purposes of the [25-percent-of-assets] limitation imposed by NRS 682A.110 [.] on the percentage of admitted assets which may be invested in common stock.
Sec. 71. NRS 682A.190 is hereby amended to read as follows:
682A.190 An insurer may invest in share or savings accounts of thrift companies, credit unions or savings and loan associations, or in savings accounts of banks, and in any one such institution only to the extent that the investment is insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 677.247 or 678.755.
Sec. 72. NRS 682A.200 is hereby amended to read as follows:
682A.200 1. An insurer may make loans or investments not otherwise expressly permitted under this chapter, in an aggregate amount not over [5] 10 percent of the insurers admitted assets and not over 1 percent of [such] those assets as to any one such loan or investment, if [such] the loan or investment fulfills the requirements of NRS 682A.030 and otherwise qualifies as a sound investment. No such loan or investment [shall] may be represented by:
(a) Any item described in NRS 681B.020 , [(assets not allowed),] or any loan or investment otherwise expressly prohibited.
κ2001 Statutes of Nevada, Page 2190 (Chapter 446, AB 618)κ
(b) Agents balances, or amounts advanced to or owing by agents, except as to policy loans, mortgage loans and collateral loans otherwise authorized under this chapter.
(c) Any category of loans or investments expressly eligible under any other provision of this chapter.
(d) Any asset [theretofore] acquired or held by the insurer under any other category of loans or investments eligible under this chapter.
2. The insurer shall keep a separate record of all loans and investments made under this section.
Sec. 73. NRS 682A.240 is hereby amended to read as follows:
682A.240 1. A domestic insurer may invest in real property only if used for the purposes or acquired in any manner, and within limits, set forth below:
(a) The building in which it has its principal office, the land upon which the building stands, and such other real property as may be requisite for the insurers convenient accommodation in the transaction of its business. The amount so invested, and apportioned as to space actually so occupied or used, must not aggregate more than 15 percent of the insurers assets; but the commissioner may authorize an insurer to increase the investment in such amount as he may determine if, upon proper showing made upon a hearing held by him, he finds that the 15-percent limitation is insufficient to provide reasonable and convenient accommodation for the insurers business.
(b) Real property acquired in satisfaction or part payment of loans, mortgages, liens, judgments, decrees or debts previously owing to the insurer in the due course of its business.
(c) Real property acquired in part payment of the consideration on the sale of other real property owned by it, if [such] the transaction has effected a net reduction in the insurers investments in real property.
(d) Real property acquired by gift or devise, or through merger, consolidation or bulk reinsurance of another insurer under this code.
(e) Additional real property and equipment incidental thereto, if necessary or convenient for the purpose of enhancing the sale or other value of real property previously acquired or held under this section. [Such] The additional real property and equipment, together with the real property for the enhancement of which it was acquired, must be included together, for the purpose of applicable investment limits, and is subject to disposal under NRS 682A.250 at the same time and under the same conditions as apply to [such] the enhanced real property.
(f) Real property, or any interest therein, acquired or held by purchase, lease or otherwise, other than real property to be used primarily for mining, development of oil or mineral resources, recreational, amusement, hotel, motel or club purposes, acquired as an investment for production of income, or acquired to be improved or developed for investment purposes pursuant to an existing program therefor. The insurer may hold, mortgage, improve, develop, maintain, manage, lease, sell, convey and otherwise dispose of real property acquired by it under this section. An insurer [shall] may not have at any one time invested in real property under this paragraph more than [15] 20 percent of its admitted assets.
2. Total investments of the insurer in real property under this section [must] may not at any time exceed [25] 35 percent of the insurers admitted assets.
κ2001 Statutes of Nevada, Page 2191 (Chapter 446, AB 618)κ
Sec. 74. Chapter 683A of NRS is hereby amended by adding thereto the provisions set forth as sections 75 to 99, inclusive, of this act.
Sec. 75. Business organization means a corporation, association, partnership, limited liability company, limited liability partnership or other legal form of organization.
Sec. 76. Home state means the District of Columbia or any state or territory of the United States or Canada in which a producer of insurance maintains his principal place of residence or principal place of business and is licensed to act as a producer of insurance.
Sec. 77. License means a document issued by the commissioner authorizing a person to act as a producer of insurance for the lines of authority specified in the document.
Sec. 78. Negotiate means to confer directly with, or offer advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, if the person conferring or offering the advice sells insurance or obtains insurance from insurers or purchasers.
Sec. 79. (Deleted by amendment.)
Sec. 80. Sell means to exchange a contract of insurance, by any means, for money or its equivalent on behalf of an insurer.
Sec. 81. Solicit means to attempt to sell insurance or to ask or urge a person to apply for a particular kind of insurance from a particular insurer.
Sec. 82. Terminate means to cancel the relationship between a producer of insurance and the insurer or to terminate a producers authority to transact insurance.
Sec. 83. Uniform application means the uniform application for licensing of producers of insurance prepared by the National Association of Insurance Commissioners and adopted by the commissioner.
Sec. 84. 1. A person shall not sell, solicit or negotiate insurance in this state for any class of insurance unless he is licensed for that class of insurance.
2. An insurer is exempt from the requirement for licensure as a producer of insurance, but this exemption does not extend to an insurers officers, directors, employees, subsidiaries or affiliates.
3. A person required to be licensed in this state who transacts insurance without a license is subject to an administrative fine of not more than $1,000 for each violation.
Sec. 85. The following persons need not be licensed as producers of insurance:
1. An officer, director or employee of an insurer or of a producer of insurance if the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and:
(a) The officer, director or employees activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance;
(b) The officer, director or employees function relates to underwriting, control of losses, inspection or the processing, adjusting, investigating or settling of claims on contracts of insurance; or
κ2001 Statutes of Nevada, Page 2192 (Chapter 446, AB 618)κ
(c) The officer, director or employee is acting in the capacity of a special agent or supervisor of an agency assisting producers of insurance where his activities are limited to providing technical advice and assistance to licensed producers and do not include sale, solicitation or negotiation of insurance.
2. A person who secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance, or for the purpose of enrolling natural persons under plans, issuing certificates under plans or otherwise assisting in administering plans, or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to him for the service. As used in this subsection, blanket accident and health insurance has the meaning ascribed to it in NRS 689B.070.
3. An employer or association or its officers, directors or employees, or the trustees of an employees trust plan, to the extent that the employer, association, officers, directors, employees or trustees are engaged in the administration or operation of a program of employees benefits for the employers or associations own employees or the employees of its subsidiaries or affiliates, if the program involves the use of insurance issued by an insurer and the employer, association, officers, directors, employees or trustees are not compensated by the insurer issuing the contracts.
4. Employees of insurers or organizations employed by insurers who are engaged in the inspection, rating or classification of risks or in the supervision of the training of producers of insurance and are not individually engaged in the sale, solicitation or negotiation of insurance.
5. A person whose activities in this state are limited to advertising, without the intent to solicit insurance in this state, through communications in printed publications or electronic mass media whose distribution is not limited to residents of this state, if he does not sell, solicit or negotiate insurance of risks residing, located or to be performed in this state.
6. A salaried full-time employee who counsels or advises his employer concerning the interests of the employer, or of the subsidiaries or affiliates of the employer, in insurance, if the employee does not sell or solicit insurance or receive a commission.
7. An employee of a producer of insurance or an insurer who responds to requests from holders of policies previously issued, if the employee is not directly compensated according to the volume of premiums that may result from those services and does not solicit insurance or offer advice concerning terms or conditions of policies.
Sec. 86. 1. A resident natural person applying for a license as a producer of insurance must pass a written examination unless exempt under section 90 of this act. The examination must test his knowledge concerning the lines of authority for which application is made, the duties and responsibilities of a producer and the laws and regulations of this state relating to insurance. The commissioner shall adopt regulations for developing and conducting examinations required by this section.
2. The commissioner may contract with a person outside the division for administering examinations, processing applications, collecting fees and performing any other functions he considers appropriate.
κ2001 Statutes of Nevada, Page 2193 (Chapter 446, AB 618)κ
3. Each natural person applying for an examination shall pay a nonrefundable fee in an amount prescribed by the commissioner to defray the cost of processing the application and administering the examination.
4. An applicant who fails to appear for the examination as scheduled or fails to pass the examination must reapply for examination and pay the required fee in order to be scheduled for another examination.
Sec. 87. 1. The commissioner shall prescribe the form of application by a natural person for a license as a resident producer of insurance. The applicant must declare, under penalty of refusal to issue, or suspension or revocation of, the license, that the statements made in the application are true, correct and complete to the best of his knowledge and belief. Before approving the application, the commissioner must find that the applicant has:
(a) Attained the age of 18 years;
(b) Not committed any act that is a ground for refusal to issue, or suspension or revocation of, a license;
(c) Completed a course of study for the lines of authority for which application is made, unless the applicant is exempt from this requirement;
(d) Paid the fee prescribed for the license and a fee of $15 for deposit in the insurance recovery account, neither of which may be refunded; and
(e) Successfully passed the examinations for the lines of authority for which application is made, unless the applicant is exempt from this requirement.
2. A business organization must be licensed as a producer of insurance in order to act as such. Application must be made on a form prescribed by the commissioner. Before approving the application, the commissioner must find that the applicant has:
(a) Paid the fee prescribed for the license and a fee of $15 for deposit in the insurance recovery account, neither of which may be refunded; and
(b) Designated a natural person licensed as a producer of insurance to be responsible for the organizations compliance with the laws and regulations of this state relating to insurance.
3. A natural person who is a resident of this state applying for a license must furnish a copy of a search concerning him conducted by the Federal Bureau of Investigation in its national criminal records, and of a search concerning him of the central repository for Nevada records of criminal history. The commissioner shall adopt regulations concerning the procedures for obtaining this information.
4. The commissioner may require any document reasonably necessary to verify information contained in an application.
Sec. 88. 1. Unless the commissioner refuses to issue the license under section 93 of this act, he shall issue a license as a producer of insurance to a person who has satisfied the requirements of sections 86 and 87 of this act. A producer may qualify for a license in one or more of the lines of authority permitted by statute or regulation, including:
(a) Life insurance on human lives, which includes benefits from endowments and annuities and may include additional benefits from death by accident and benefits for dismemberment by accident and for disability.
(b) Health insurance for sickness, bodily injury or accidental death, which may include benefits for disability.
(c) Property insurance for direct or consequential loss or damage to property of every kind.
κ2001 Statutes of Nevada, Page 2194 (Chapter 446, AB 618)κ
(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personal property.
(e) Surety indemnifying financial institutions or providing bonds for fidelity, performance of contracts, or financial guaranty.
(f) Variable annuities, including coverage reflecting the results of a separate investment account.
(g) Credit insurance, including life, disability, property, unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed protection of assets, and any other form of insurance offered in connection with an extension of credit that is limited to wholly or partially extinguishing the obligation which the commissioner determines should be considered as limited-line credit insurance.
(h) Personal lines, consisting of automobile and motorcycle insurance and residential property insurance, including coverage for flood, of personal watercraft and of excess liability, written over one or more underlying policies of automobile or residential property insurance.
(i) Fixed annuities as a limited line.
(j) Travel and baggage as a limited line.
(k) Rental car agency as a limited line.
2. A license as a producer of insurance remains in effect unless revoked, suspended, allowed to expire or otherwise terminated, if the license is renewed when due, the fee for renewal and a fee of $15 for deposit in the insurance recovery account are paid for each license and each affiliation with a business organization licensed pursuant to subsection 2 of section 87 of this act and any requirement for education is satisfied by the due date.
3. A natural person who allows his license as a producer of insurance to expire may reapply for the same license within 12 months after the date renewal was due without passing a written examination, but a penalty twice the unpaid renewal fee is required for any renewal fee received after the due date.
4. A licensed producer of insurance who is unable to renew his license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of an examination, fine or sanction otherwise required or imposed because of failure to renew.
5. A license must state the licensees name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and contain any other information the commissioner considers necessary. A resident producer shall maintain a place of business in this state which is accessible to the public and where he principally conducts transactions under his license. The place of business may be in his residence. The license must be conspicuously displayed in an area of the place of business which is open to the public.
6. A licensee shall inform the commissioner of a change of address, in writing or by other means acceptable to the commissioner within 30 days after the change. If a licensee changes his address without giving written notice and the commissioner is unable to locate the licensee after diligent effort, he may revoke the license without a hearing. The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his last mailing address appearing on the records of the division, and the return of the letter undelivered, constitutes a diligent effort by the commissioner.
κ2001 Statutes of Nevada, Page 2195 (Chapter 446, AB 618)κ
return of the letter undelivered, constitutes a diligent effort by the commissioner.
Sec. 89. 1. Unless the commissioner refuses to issue the license under section 94 of this act, the commissioner shall issue a license as a producer of insurance to a nonresident person if:
(a) He is currently licensed as a resident and in good standing in his home state;
(b) He has made the proper request for licensure and paid the fee prescribed for the license and a fee of $15 for deposit in the insurance recovery account;
(c) He has sent to the commissioner the application for licensure that he made in his home state, or a completed uniform application; and
(d) His home state issues nonresident licenses as producers of insurance to residents of this state pursuant to substantially the same procedure.
2. The commissioner may participate with the National Association of Insurance Commissioners or a subsidiary in a centralized registry in which licensing and appointment of producers of insurance may be effected for all states that require licensing and participate in the registry. If he finds that participation is in the public interest, he may adopt by regulation any uniform standards and procedures necessary for participation, including central collection of fees for licensing and appointment that are handled through the registry.
3. A nonresident producer who moves from one state to another state shall file a change of address and certification from his new state of residence within 30 days after his change of legal residence. No fee or application for license is required.
4. A nonresident licensed as a producer for surplus lines in his home state must be issued a nonresident license of that kind in this state pursuant to subsection 1, subject in all other respects to chapter 685A of NRS. A nonresident licensed as a producer for limited lines in his home state is entitled to a nonresident license of that kind in this state pursuant to subsection 1, granting the same scope of authority as the license issued in the home state. As used in this subsection, insurance for limited lines is authority granted by the home state which is restricted to less than the total authority prescribed for the associated major lines pursuant to section 88 of this act.
Sec. 90. 1. An applicant for licensing in this state as a producer of insurance who was previously licensed for the same lines of authority in another state need not complete any education or examination if he is currently licensed in that state or, if the application is received within 90 days after the cancellation of his license, the other state certifies that he was in good standing at the time of cancellation. Alternatively, the exemption is available if the records of the National Association of Insurance Commissioners show that the applicant is or was licensed and in good standing for the lines of authority requested.
2. An examination is not required for a producer of insurance who confines his activity to insurance categorized as limited line, credit, travel, baggage or fixed annuity, or covering vehicles leased for a short term.
κ2001 Statutes of Nevada, Page 2196 (Chapter 446, AB 618)κ
3. A person licensed in another state who moves to this state and desires to become licensed as a resident producer of insurance with the benefit of the exemption provided in subsection 1 must apply for licensing within 90 days after establishing legal residence.
Sec. 91. 1. An applicant for a license as a producer of insurance who desires to use a name other than his true name as shown on the license shall file with the commissioner a certified copy of the certificate filed pursuant to chapter 602 of NRS. An incorporated applicant or licensee shall file with the commissioner a document showing the corporations true name and all fictitious names under which it conducts or intends to conduct business. A licensee shall file promptly with the commissioner written notice of any change in or discontinuance of the use of a fictitious name.
2. The commissioner may disapprove in writing the use of a true name, other than the true name of a natural person who is the applicant or licensee, or a fictitious name of any applicant or licensee, on any of the following grounds:
(a) The name interferes with or is deceptively similar to a name already filed and in use by another licensee.
(b) Use of the name may mislead the public in any respect.
(c) The name states or implies that the applicant or licensee is an insurer, motor club or hospital service plan or is entitled to engage in activities related to insurance not permitted under the license applied for or held.
(d) The name states or implies that the licensee is an underwriter, but:
(1) A natural person licensed as an agent or broker for life insurance may describe himself as an underwriter or chartered life underwriter if entitled to do so;
(2) A natural person licensed for property and casualty insurance may use the designation chartered property and casualty underwriter if entitled thereto; and
(3) An insurance agent or brokers trade association may use a name containing the word underwriter.
(e) The licensee has already filed and not discontinued the use of more than two names, including the true name.
3. A licensee shall not use a name after written notice from the commissioner that its use violates the provisions of this section. If the commissioner determines that the use is justified by mitigating circumstances, he may permit, in writing, the use of the name to continue for a specified reasonable period upon conditions imposed by him for the protection of the public consistent with this section.
4. Paragraphs (a), (c) and (d) of subsection 2 do not apply to the true name of an organization which on July 1, 1965, held under that name a type of license similar to those governed by this chapter, or to a fictitious name used on July 1, 1965, by a natural person or organization holding such a license, if the fictitious name was filed with the commissioner on or before July 1, 1965.
Sec. 92. 1. The commissioner may issue a temporary license as a producer of insurance to any of the following for 180 days or less without requiring an examination if he believes that the temporary license is necessary to carry on the business of insurance:
κ2001 Statutes of Nevada, Page 2197 (Chapter 446, AB 618)κ
(a) The surviving spouse, personal representative or guardian of a licensed producer who dies or becomes incompetent, to allow adequate time for the sale of the business, the recovery or return of the producer, or the training and licensing of new personnel to operate the business;
(b) A member or employee of a business organization licensed as a producer, upon the death or disability of the natural person designated in it application or license;
(c) The designee of a licensed producer entering active service in the armed forces of the United States; or
(d) A person in any other circumstance where the commissioner believes that the public interest will be best served by issuing the license.
2. The commissioner may limit by order the authority of a temporary licensee as he believes necessary to protect persons insured and the public. He may require the temporary licensee to have a suitable sponsor who is licensed as a producer of insurance or authorized as an insurer and who assumes responsibility for all acts of the temporary licensee, and may impose similar requirements to protect persons insured and the public. The commissioner may revoke a temporary license by order if the interests of persons insured or the public are endangered. A temporary license expires when the owner or his personal representative or guardian disposes of the business.
Sec. 93. The commissioner may refuse to issue a license or certificate pursuant to this chapter or may place any person to whom a license or certificate is issued pursuant to this chapter on probation, suspend him for not more than 12 months, or revoke or refuse to renew his license or certificate, or may impose an administrative fine or take any combination of the foregoing actions, for one or more of the following causes:
1. Providing incorrect, misleading, incomplete or partially untrue information in his application for a license.
2. Violating a law regulating insurance, or violating a regulation, order or subpoena of the commissioner or an equivalent officer of another state.
3. Obtaining or attempting to obtain a license through misrepresentation or fraud.
4. Misappropriating, converting or improperly withholding money or property received in the course of the business of insurance.
5. Intentionally misrepresenting the terms of an actual or proposed contract of or application for insurance.
6. Conviction of a felony.
7. Admitting or being found to have committed an unfair trade practice or fraud.
8. Using fraudulent, coercive or dishonest practices, or demonstrated incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere.
9. Denial, suspension or revocation of a license as a producer of insurance, or its equivalent, in any other state, territory or province.
10. Forging anothers name to an application for insurance or any other document relating to the transaction of insurance.
11. Improperly using notes or other reference material to complete an examination for a license related to insurance.
12. Knowingly accepting business related to insurance from an unlicensed person.
κ2001 Statutes of Nevada, Page 2198 (Chapter 446, AB 618)κ
13. Failing to comply with an administrative or judicial order imposing an obligation of child support.
Sec. 94. 1. If the commissioner denies an application for, or refuses to renew, a license, he shall notify the applicant or licensee and state in writing the reason for the denial or refusal. The applicant or licensee may apply in writing, pursuant to NRS 679B.310, for a hearing before the commissioner to determine the reasonableness of the denial or refusal. The hearing must be held within 30 days and conducted pursuant to NRS 679B.330. The applicant or licensee may waive the requirement to hold the hearing within 30 days, in writing, before a hearing is held.
2. The commissioner may suspend, revoke or refuse to renew the license of a business organization if he finds, after hearing, that a violation by a natural person was known or should have been known by one or more of the partners, officers or managers acting on behalf of the organization, the violation was not reported to the commissioner, and no corrective action was taken.
3. In addition to or in lieu of a denial, suspension or revocation of, or refusal to renew, a license, an administrative fine of not less than $25 nor more than $500 may be imposed for each violation or act. An order imposing a fine must specify the date, not less than 15 days nor more than 30 days after the date of the order, before which the fine must be paid. If the fine is not paid when due, the commissioner shall immediately revoke the license of a licensee and the fine must be recovered in a civil action brought on behalf of the commissioner by the attorney general. The commissioner shall immediately deposit all such fines collected with the state treasurer for credit to the state general fund.
4. The commissioner retains the authority to enforce the provisions of, and impose any penalty or pursue any remedy authorized by, this Title against any person who is under investigation for or charged with a violation of a provision of this Title even if his license or registration has been surrendered or has lapsed by operation of law.
5. A licensee must pay all applicable fees, including renewal fees, and maintain any required education during a period of suspension of his license.
Sec. 95. 1. An insurer or a producer of insurance shall not pay a commission, brokerage, fee for service or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if his activities require him to be licensed under this Title and he is not so licensed.
2. A person shall not accept a commission, brokerage, fee for service or other valuable consideration for selling, soliciting or negotiating insurance in this state if his activities require him to be licensed under this Title and he is not so licensed.
3. Commissions for renewal and other deferred commissions may be paid to a person whose activities required him to be licensed under this Title at the time of the sale, solicitation or negotiation and he was so licensed at that time.
4. An insurer or producer of insurance may pay or assign commissions, brokerage, fees for service or other valuable considerations to an insurance agency or a person who does not sell, solicit or negotiate insurance in this state unless the payment would violate the provisions of NRS 686A.110 or 686A.120.
κ2001 Statutes of Nevada, Page 2199 (Chapter 446, AB 618)κ
Sec. 96. 1. A producer of insurance shall not act as an agent unless he is appointed as an agent by the insurer. A producer who is not acting as an agent is a broker who does not need to be appointed.
2. To appoint a producer of insurance as its agent, an insurer must file, in a form approved by the commissioner, a notice of appointment within 15 days after the contract is executed or the first application for insurance is submitted. An insurer may appoint a producer to act as agent for all or some insurers within its holding company or group by filing a single notice of appointment. A notice of appointment may include several agents.
3. Upon receipt of a notice of appointment, the commissioner shall determine within 30 days whether the producer of insurance is eligible for appointment. If he is not, the commissioner shall so notify the insurer within 5 days after the determination is made.
4. An insurer shall pay an appointment fee and remit an annual renewal fee for each producer of insurance appointed as its agent. A payment or remittance may include fees for several agents.
5. A broker shall not place insurance, other than life insurance, health insurance, annuity contracts or coverage written pursuant to the Surplus Lines Law set forth in chapter 685A of NRS, that covers property or risks within this state unless the broker does so with a licensed agent of an authorized insurer.
6. A producer who is acting as an agent may also act as and be a broker with regard to insurers for which he is not acting as an agent. The sole relationship between an insurer and a broker who is appointed as an agent by the insurer as to any transactions arising during the period in which he is appointed as an agent is that of insurer and agent, and not insurer and broker.
7. As used in this section:
(a) Agent means a producer of insurance who is compensated by the insurer and sells, solicits or negotiates insurance for the insurer.
(b) Broker means a producer of insurance who:
(1) Is not an agent of an insurer;
(2) Solicits, negotiates or procures insurance on behalf of an insured or prospective insured; and
(3) Does not have the power, by his own actions as a broker, to obligate an insurer upon any risk or with reference to any transaction of insurance.
Sec. 97. 1. An insurer or its authorized representative who terminates the appointment, employment or other relationship of a producer of insurance to the insurer for any reason shall notify the commissioner within 30 days after the effective date of the termination, in a form prescribed by the commissioner. The insurer shall provide additional information or documents if so requested in writing by the commissioner.
2. If the reason for termination is an activity described in section 93 of this act as a cause for disciplinary action or the insurer knows that the producer has been found to have engaged in such an activity by a court, governmental agency or self-regulatory organization authorized by law, the insurer or its authorized representative shall notify the commissioner, in a form acceptable to the commissioner, if upon further review or investigation the insurer discovers additional information that would have been reportable originally to the commissioner if the insurer had then known it.
κ2001 Statutes of Nevada, Page 2200 (Chapter 446, AB 618)κ
been reportable originally to the commissioner if the insurer had then known it.
3. Within 15 days after notifying the commissioner under subsection 1 or 2, the insurer shall mail a copy of the notification to the producer of insurance at his last known address. If the termination was for an activity described in subsection 2, the copy must be sent by certified mail, return receipt requested, or by overnight delivery using a nationally recognized carrier.
4. Within 30 days after the producer has received the original or additional notification, he may file written comments concerning the substance of the notification with the commissioner. The producer shall send a copy of the comments, by the same means and at the same time, to the reporting insurer. The comments become a part of the commissioners file and must accompany every copy of the underlying report that is distributed or disclosed by the commissioner.
5. In the absence of actual malice, an insurer, its authorized representative, a producer of insurance, the commissioner, and any organization of which the commissioner is a member which compiles information and makes it available to other commissioners of insurance or to regulatory or law enforcement agencies are not subject to civil liability, and no cause of action arises against any of them or their respective agents or employees, as a result of any statement or information required by or provided pursuant to this section or any statement by a terminating insurer or a producer to another insurer or producer limited to whether a termination for a cause described in subsection 2 was reported to the commissioner, if in the latter case the propriety of termination for that cause is certified in writing by an officer or authorized representative of the insurer or by the producer.
6. In an action brought against a person who may have immunity under subsection 5 for making a statement or providing information required by this section or requested by the commissioner under this section, the plaintiff must plead specifically that subsection 5 does not apply because the person making the statement or providing the information did so with actual malice.
7. Subsections 5 and 6 do not abrogate or modify any other privilege or immunity under statute or the common law.
Sec. 98. An insurer or its authorized representative who fails to report as required by section 97 of this act or is found by a court of competent jurisdiction to have reported with actual malice is subject to the suspension or revocation of its license, after notice and hearing, and may be further punished by a fine under NRS 679A.180.
Sec. 99. A producer of insurance shall report to the commissioner:
1. Any administrative action taken against him in another jurisdiction or by another governmental agency in this state, within 30 days after the final disposition of the matter. The report must include a copy of the complaint filed, the order issued, and any other relevant legal documents.
2. Any criminal prosecution against him in any jurisdiction, within 30 days after the initial pretrial hearing. The report must include a copy of the complaint filed, the order as a result of the pretrial hearing, and other relevant legal documents.
κ2001 Statutes of Nevada, Page 2201 (Chapter 446, AB 618)κ
Sec. 100. NRS 683A.020 is hereby amended to read as follows:
683A.020 As used in this code, unless the context otherwise requires, the words and terms defined in NRS 683A.025 to [683A.080,] 683A.060, inclusive, and sections 75 to 83, inclusive, of this act, have the meanings ascribed to them in those sections.
Sec. 101. NRS 683A.025 is hereby amended to read as follows:
683A.025 1. Except as limited by this section, administrator means a person who:
(a) Directly or indirectly underwrites or collects charges or premiums from or adjusts or settles claims of residents of this state or any other state from within this state in connection with workers compensation insurance, life or health insurance coverage or annuities, including coverage or annuities provided by an employer for his employees;
(b) Administers an internal service fund pursuant to NRS 287.010;
(c) Administers a program of self-insurance for an employer;
(d) Administers a program which is funded by an employer and which provides pensions, annuities, health benefits, death benefits or other similar benefits for his employees; or
(e) Is an insurance company that is licensed to do business in this state or is acting as an insurer with respect to a policy lawfully issued and delivered in a state where the insurer is authorized to do business, if the insurance company performs any act described in paragraphs (a) to (d), inclusive, for or on behalf of another insurer.
2. Administrator does not include:
(a) An employee authorized to act on behalf of an administrator who holds a certificate of registration from the commissioner.
(b) An employer acting on behalf of his employees or the employees of a subsidiary or affiliated concern.
(c) A labor union acting on behalf of its members.
(d) Except as otherwise provided in paragraph (e) of subsection 1, an insurance company licensed to do business in this state or acting as an insurer with respect to a policy lawfully issued and delivered in a state in which the insurer was authorized to do business.
(e) A producer of life or health insurance [agent or broker] licensed in this state, when his activities are limited to the sale of insurance.
(f) A creditor acting on behalf of his debtors with respect to insurance covering a debt between the creditor and debtor.
(g) A trust and its trustees, agents and employees acting for it, if the trust was established under the provisions of 29 U.S.C. § 186.
(h) A trust which is exempt from taxation under section 501(a) of the Internal Revenue Code, 26 U.S.C. § 501(a), its trustees and employees, and a custodian, his agents and employees acting under a custodial account which meets the requirements of section 401(f ) of the Internal Revenue Code, 26 U.S.C. § 401(f).
(i) A bank, credit union or other financial institution which is subject to supervision by federal or state banking authorities.
(j) A company which issues credit cards, and which advances for and collects premiums or charges from credit card holders who have authorized it to do so, if the company does not adjust or settle claims.
(k) An attorney at law who adjusts or settles claims in the normal course of his practice or employment, but who does not collect charges or premiums in connection with life or health insurance coverage or with annuities.
κ2001 Statutes of Nevada, Page 2202 (Chapter 446, AB 618)κ
Sec. 102. NRS 683A.060 is hereby amended to read as follows:
683A.060 1. A managing general agent is a person who:
(a) Negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer, including the management of a separate division, department of underwriting office; [and] or
(b) Acts as an agent for [such] the insurer and with or without the authority, either separately or together with affiliates:
(1) Produces, directly or indirectly, and underwrites an amount of gross direct written premiums equal to or more than 5 percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year; and
(2) Adjusts or pays claims in excess of an amount determined by the commissioner or negotiates reinsurance on behalf of the insurer.
2. A managing general agent includes a person with authority to appoint and to terminate the appointment of an agent for an insurer.
3. For the purposes of this chapter, the following are not managing general agents:
(a) An employee of the insurer;
(b) A manager of the United States branch of an alien insurer;
(c) An attorney authorized by and acting for the subscribers of a reciprocal insurer or interinsurance exchange; and
(d) An underwriting manager who, pursuant to a contract, manages all or part of the insurance operations of the insurer, is under common control with the insurer, is subject to the provisions of chapter 692C of NRS and whose compensation is not based on the volume of premiums written or the profit of the business written.
Sec. 103. NRS 683A.08522 is hereby amended to read as follows:
683A.08522 Each application for a certificate of registration as an administrator must include or be accompanied by:
1. A financial statement that is certified by an officer of the applicant and must include:
(a) The amount of money that the applicant expects to collect from or disburse to residents of this state during the next calendar year;
(b) Financial information for the 90 days immediately preceding the date the application was filed with the commissioner; and
(c) An income statement and balance sheet for the 2 years immediately preceding the application that are prepared in accordance with generally accepted accounting principles. The submission by the applicant of his consolidated income statement and balance sheet does not constitute compliance with the provisions of this paragraph.
2. The documents used to create the business association of the administrator, including [, without limitation,] articles of incorporation, articles of association, a partnership agreement, a trust agreement and a [shareholder] shareholders agreement.
3. The documents used to regulate the internal affairs of the administrator, including [, without limitation,] the bylaws, rules or regulations of the administrator.
4. A certificate of registration issued pursuant to NRS 600.350 for a trade name or trade-mark used by the administrator.
5. An organizational chart that identifies each person who directly or indirectly controls the administrator and each affiliate of the administrator.
κ2001 Statutes of Nevada, Page 2203 (Chapter 446, AB 618)κ
6. A notarized affidavit from each person who manages or controls the administrator, including [, without limitation,] each member of the board of directors or board of trustees, each officer, partner and member of the business association of the administrator, and each shareholder of the administrator who holds not less than 10 percent of the voting stock of the administrator. The affidavit must include : [, without limitation:]
(a) The personal history, business record and insurance experience of the affiant;
(b) Whether the affiant has been investigated by any regulatory authority or has had any license or certificate denied, suspended or revoked in any state; and
(c) Any other information that the commissioner may require.
7. The complete name and address of each office of the administrator, including offices located outside this state.
8. A statement that sets forth whether the administrator has:
(a) Held a license or certificate to transact any kind of insurance in this state or any other state and whether that license or certificate has been refused, suspended or revoked;
(b) Been indebted to any person and, if so, the circumstances of that debt; and
(c) Had an administrative agreement canceled and, if so, the circumstances of that cancellation.
9. A statement that describes the business plan of the administrator. The statement must include information:
(a) Concerning the number of persons on the staff of the administrator and the activities proposed in this state or in any other state.
(b) That demonstrates the capability of the administrator to provide a sufficient number of experienced and qualified persons for the processing of claims, the keeping of records and, if applicable, underwriting.
10. If the applicant intends to solicit new or renewal business, proof that the applicant employs or has contracted with [an agent] a producer of insurance licensed in this state to solicit and take applications. An applicant who intends to solicit insurance contracts directly or to act as [an insurance agent] a producer must provide proof that he is licensed as [an insurance agent] a producer in this state.
Sec. 104. NRS 683A.090 is hereby amended to read as follows:
683A.090 1. [A person shall not in this state be, act as or hold himself out to be, with respect to subjects of insurance resident, located or to be performed in this state or elsewhere, an agent, broker or solicitor unless licensed as such under this code.] A managing general agent, whether or not located in this state, shall not be or act as such with respect to the business of an insurer in this state unless licensed as such under this code.
2. [An agent, broker or solicitor shall not take an application for, procure or place for others any kind of insurance as to which he is not then so licensed.
3. Except as otherwise provided in NRS 683A.440 concerning the sharing of commissions, an agent shall not place any insurance with any insurer as to which he does not then hold a license and an appointment as agent under this code.
4.] A person who acts as [an agent, broker or solicitor] a managing general agent in this state without a license may be assessed an administrative fine of not more than $1,000 for each violation.
κ2001 Statutes of Nevada, Page 2204 (Chapter 446, AB 618)κ
[5. In addition to or in lieu of any applicable denial, suspension or revocation of license or administr